India's interest lie in early solution to European crisis

India's interests lie in Eurozone countries resolving issues and finding solutions to the crisis, Prime Minister Dr Manmohan Singh said at the conclusion of the G20 conference here Friday night, according to the Press Information Bureau of India. Speaking to journalists, Dr Singh said, "We are living in an increasingly integrated, globalized world and there are many linkages India has with Europe. Europe is our largest trading partner. It is a very important source of capital and technology flows. "If the Eurozone is in crisis, it affects us in many ways. Therefore, it is in our interest that the Eurozone countries should get their act together, and present a credible picture of resolving the tensions that have arisen." The demand for imports will be slow if growth in Eurozone slows down which will affect India, he said."If the financial markets are in a disturbed state, there will be instability, insecurity, and therefore capital might not flow in our direction, in the manner in which we would like. In the same way, technology flow can also be affected when there is a growing uncertainty in the economic environment," Dr Singh said, replying to a question of the probable spillover of the European crisis in India. Replying to a question on the need of transparency in banking and dealing effectively with money laundering, Dr Singh said, "We are trying to negotiate new information exchange agreements (Tax Information Exchange Agreements), tax agreements (Double Taxation avoidance Agreements) with foreign countries. It is a work- in- progress" and added "that the only secure, long-term way is to create an environment in which we discourage the flow of such money to foreign countries."