Highlighting what he described as 'democracy deficit' within the United Nations, Mr Singh told world leaders that the global war on terror lacked 'substance and credibility'.

"We speak about cooperation, but seem hesitant to commit ourselves to a global offensive to root out terrorism, with the pooling of resources, exchange of information (and) sharing of intelligence," he said.

"It is a sad reality that international networks of terror appear to cooperate more effectively among themselves than the democratic nations that they target," he added.

Pushing India's bid for a permanent Security Council seat, Mr Singh said reform of the United Nations' top-decision making body was crucial to refashioning a new multilateral order capable of taking on the global challenges of the 21st century.

"It is common knowledge that the UN is often unable to exert an effective influence on global economic and political issues of critical importance," the Indian leader said.

"This is due to it's democracy deficit, which prevents effective multilateralism. "The expansion of the Security Council ... and the inclusion of countries like India as permanent members, would be a first step in the process of making the UN a truly representative body," he said.

While acknowledging the importance of defeating terrorism, Mr Singh warned of the dangers of ignoring hunger and poverty eradication. "Development must return to the centre of global discourse," he said, noting that UN members had already 'fallen behind' in implementing the ambitious programmes envisaged by the Millennium Summit four years ago.