The Eurozone crisis is not likely to impact the Indian economy directly as India is not fully dependent for trade with Europe. There may be some spillover effects.

Eurozone crisis and its spillover effects, prospects of overcoming difficulties on account global economic slowdown, charting sustainable growth path and mutual assessment process (MAP) are top on the agenda for the two-day 6th G-20 Summit scheduled to begin from November 3 in Cannes in France.

The Indian Prime Minister, Dr Manmohan Singh will lead the official team to the G-20 Summit which includes the Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia. Dr Singh is slated to land in Cannes on November 2.

“India has received no specific request for bailing out the Eurozone crisis,” said Ahluwalia. He, however, said : “we are a part of the process for resolving the global financial crisis .The possibilities for bilateral support is always open,” he said.

He further said : “The IMF and other global financial institutions should directly step in and resolve the Eurozone crisis. The IMF is not only for assisting developing world alone, it has a role to play in the developed world too.”

On the possible impact of the present Eurozone crisis on Indian economy, Ahluwalia said : “there will be no direct impact of the Eurozone crisis on India as we are not fully dependent on trade with the European Union. There may be some spill over effects.”

“The problem in Greece is building up. Greece needs to voluntarily reduce its debt. A European Union-cum-IMF package is needed to bail out Greece,” he said.

A report on global governance is likely to be presented by the UK Prime Minister David Cameron.

Ahluwalia was of the view that the present Eurozone crisis was due to the rising Sovereign Debt and not due to excessive lending to the private sector business. The European leaders failed to read the impending crisis in advance.

He said that the global financial situation was improving after the 2008 crisis before it could be overtaken by the Eurozone crisis.

The G-20 leaders are slated to discuss mutual assessment process (MAP) co-chaired by India and Canada. The MAP will discuss situations in India, China and PIGS countries – Portugal, Ireland, Greece and Spain – and outline policy priorities for each of these countries.

G-20 is represented by Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, US, European Commission, European Council. The special invitees to G-20 Summit are Ethiopia, Singapore, Spain, UAE, Equatorial Guinea. Invitee organizations are the African Union, Basel Commission on Banking Supervision, CCASG, European Central Bank, Financial Stability Board, Global Governance Board, ILO, IMF, NEPAD, OECD, United Nations, World Bank and the World Trade Organisation.