BALI (Indonesia) - (NNN-PTI) -- With the IAEA weighing options to deal with Iran's nuclear programme, Indian Prime Minister Manmohan Singh on Friday said the issue should be dealt with diplomatically as he discussed it with US President Barack Obama.

Singh, who met Obama on the sidelines of the ASEAN summit, said matters relating to Iran's nuclear programme should be dealt with diplomatically.

With the IAEA coming out with a report against Iran on its atomic programme, India on Thursday said it was a "disturbing" development and made it clear that it did not want a nuclear-armed Iran.

"It is disturbing," official sources said while commenting on the UN nuclear watchdog's report that Iran carried out "activities relevant to the development of a nuclear explosive device".

The sources said if Iran acquires nuclear weapons, it would have security implications for the region which India did not want.

This is why India had voted on resolutions at International Atomic Energy Agency (IAEA) against Iran, they pointed out.

At the same time, the sources noted India's contention that Iran had the right to peaceful use of nuclear energy as per the international norms.

The IAEA is debating a number of drafts of resolutions following the latest development, which India is going to support.

While the IAEA report that came out last week almost accused Iran of trying to pursue nuclear arms, Tehran rejected the report as "baseless". -- NNN-PTI

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