Mumbai: A worsening of the financial turmoil in the US and other major economies could lead into a major recession and would affect trade and the capacity of emerging economies to finance development, prime minister Manmohan Singh has said.

Speaking in Paris, the prime minister also agreed with French president Nicolas Sarkozy's view that all major developing countries have a stake in resolving the present financial crisis.

India and China, as the two major developing countries, should take part in helping resolve the current crisis, Manmohan said in remarks published in the French daily Le Figaro.

Crisis affecting the developed countries at the moment can spread to the rest of the world and India and China should be part of a solution-finding exercise, he added.

''The prime responsibility is that of the developed nations. But India and China should take part in the solution,'' Singh said.

Manmohan also said India may take part in an international summit on the financial crisis proposed by Sarkozy.

''If the financial crisis provokes a recession in the main industrial economies, that will compromise our exports. President Sarkozy's proposal is therefore important,'' he added.

''We live in an interdependent world and the fate of every nation is tied to the international finance sector,'' the prime minister said.

''Indian markets are opened to the world and to the extend they are affected, it will also affect our capacity to finance development,'' he said.

See: Text of prime minister Manmohan Singh's statement to the press after the India-France Summit in Paris