Developing states key to solving financial crisis: PM

TOKYO: Prime Minister Manmohan Singh called Wednesday for developing nations to play a role in resolving the global financial crisis, warning that the turmoil had effects across the globe.

Singh made his appeal on a visit to Japan, Asia's largest economy, where he was due to hold talks on securing an elusive free trade agreement.

"Developing countries like India are also affected by the crisis and have to be part of the solution," Singh told a luncheon with Japanese business leaders.

He said that India hoped to play a greater role in moves to step up surveillance of the global financial system.

The financial crisis was sparked when toxic assets overwhelmed some of Wall Street's biggest banks. But the Indian stock market has also been hit and is now trading 50 percent below January levels.

The central Reserve Bank of India on Monday cut its lending rate for the first time since 2004 and Singh conceded earlier this week that the country would face a "temporary slowdown" from "the ripple effects" of the crisis.

Singh, however, told the Japanese audience that he did not believe the crisis altered the strengths in the Indian economy.

"Fundamentals of the Indian economy have been and continue to be strong," said Singh, who was credited with opening up India's economy to the world when he was finance minister.

Singh was due later Wednesday to hold talks with Japanese Prime Minister Taro Aso on reaching a free-trade agreement and promoting cooperation on nuclear energy.