Prime minister Manmohan Singh has called upon the captains of Indian industry to join in with the government in an effort to convert the current global financial market crisis into an opportunity for India.

Outlining the measures being taken by the government to prevent Indian economy from facing the adverse affects of the global financial crisis, he said the Indian economy has its own strengths and we could build on it  to survive the global meltdown.

''We are meeting at a time when the world economy is going through an unprecedented crisis which started in the financial sector in the US but has now spread globally. The financial crisis has exacerbated a global downturn that was expected earlier but is now likely to be more severe and prolonged. A crisis of this magnitude was bound to affect our economy and it has shrunk international credit with adverse effects on our corporates and our banks,'' he said, adding, ''Global uncertainty is also tending to dampen investor sentiment. All countries have recognised the severity of the problem and its likely fallout, and are taking strong steps in a coordinated fashion. We have done the same and I wanted to share with you the approach we shall follow.''

He said while the country's financial institutions are largely protected from the contagion effects of the financial market turmoil that followed the US subprime credit crisis, the indirect effects of the global slow-down has led to some loss of confidence in the market.

''Our banks are well regulated and also well capitalised. I think we have successfully conveyed to our people that our banking system, both in the public and the private sector, is safe, and the government stands behind it and that no one should fear for the safety of bank deposits.''

He said the government and the Reserve Bank of India have taken several measures to infuse liquidity into the system and ensure adequate flow of credit, but the situation has has turned abnormal and we need to be constantly on the alert.

However, he said, the government is also concerned that the negative impact on the real economy must be minimised. ''We are now able to act more boldly because our efforts to contain inflation have begun to be effective,'' he added.

The government has already reduced the duty on ATF to provide relief to civil aviation sector and the iron & steel industry. The government, he said, is closely monitoring the evolving macro economic situation and is fully alive to its responsibilities to sustain the growth momentum of the economy at a reasonable level.

''Expanding investment in infrastructure can play an important counter cyclical role in this situation. We will review projects and programmes in the area of infrastructure development, including both pure public sector projects and public private partnership projects, to ensure that their implementation is expedited and they do not suffer from constraints of funds," the prime minister said..

''We are in any case expanding expenditure in the social sectors, ie, health and education and in rural and agricultural development and progress in these areas will be closely monitored,'' he added.

He said the government's efforts to revive agriculture has borne fruit and agricultural growth has gone up to around 4.7 per cent from below 3.0 per cent.

Agriculture, together with  investments in infrastructure should help India revive the growth momentum and maintain stability in the economy.

''I invite all of you, to join in the effort to convert this global crisis into an opportunity for India. I trust you will continue to show the confidence and dynamism that had taken our manufacturing growth to all time highs and the rate of growth of the economy to a level that was considered unimaginable, even a decade ago,'' the prime minister said.

''Our high savings and investment rates have been a great strength in the recent past and we hope that the Indian corporate sector will not let the global crisis shake its confidence. While every effort needs to be made to cut costs and raise productivity, I hope there will be no knee jerk reaction such as large scale lay-offs which may lead to a negative spiral. Industry must bear in mind its societal obligations in coping with the effects of this global crisis. Government and industry must act in a true spirit of partnership to meet the challenges that lie ahead,'' he added.

He assured industry that the government will take all necessary monetary and fiscal policy measures to protect growth.

While India is working closely with other countries to ensure coordinated policy action and increased development cooperation for the containment of the present crisis, he said the country has also demanded reform of the international financial institutions, and improved regulation and supervision, to prevent recurrence of such crises.