TOKYO - Indian 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.

The 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 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 problems 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.

Singh earlier said that he hoped to seal a free trade deal with Japan by the end of the year.

The two countries missed a goal of wrapping up the agreement by mid-2008 due to disputes over how much to cut tariffs and whether Japan would ease its tight restrictions to permit imports of Indian generic drugs.

Aso, a former foreign minister who took office a month ago, is a long-time advocate of improving relations with India to off-set ties with China, which are often strained by memories of Japan's past aggression.

Singh and Aso are expected to sign a loan agreement for Japan to fund a 1,468-kilometre (912-mile) rail connection between New Delhi and Mumbai.

India has identified improving its creaky infrastructure as key to sustaining its high rates of growth.

The two leaders were also expected to discuss cooperation on nuclear energy, although a Japanese official said they were unlikely to reach any deals.

Japan, the only nation to have suffered an atomic attack, was hesitant about India's landmark deal with the United States giving access to nuclear technology.

New Delhi refuses to sign the nuclear Non-Proliferation Treaty.