Prime Minister Narendra Modi on Friday said the recent developments in Afghanistan will have the greatest impact on neighbouring countries like India and continuing instability in that country will encourage terrorist and extremist ideologies all over the world.

In a virtual address at an SCO meeting on Afghanistan, Modi said there was a need for regional focus and cooperation on the situation in the country.

"The recent developments in Afghanistan will have the greatest impact on neighbouring countries like us. And therefore, there is a need for regional focus and cooperation on this issue," he said.

Modi warned that if "instability and fundamentalism" persist in Afghanistan, it will encourage terrorist and extremist ideologies all over the world.

"Other extremist groups can also be encouraged to gain power through violence," he said, adding the change of power in Afghanistan is not inclusive and has happened without negotiation.

The prime minister also flagged his concerns over the serious humanitarian crisis unfolding in Afghanistan, noting that the economic woes of the Afghan people are increasing due to the blockage in financial and trade flows.

He said the developments in Afghanistan could lead to an "uncontrolled" flow of drugs, illegal weapons and human trafficking.

"A large amount of advanced weapons remain in Afghanistan. Due to these, there will be a risk of instability in the entire region," Modi said.