Stimulus exit when recovery clear - Pranab Mukherjee

LONDON (Reuters) - The timing of the withdrawal of stimulus steps for India's economy will be decided when it becomes clear the economy is recovering, but there will be no fresh stimulus, Finance Minister Pranab Mukherjee said on Sunday.

"I have indicated we will decide when the economy is on the path of recovery. Then we will decide how to exit," he said.

"Will there be further stimulus? I have indicated there is no question of further stimulus."

He was speaking to reporters in London after attending a meeting of finance ministers and central bankers from the Group of 20 nations in Scotland.

Earlier on Sunday, Prime Minister Manmohan Singh told an investors forum in India that some fiscal stimulus measures could be withdrawn from next year.

Last month, the Reserve Bank of India signalled an interest rate hike was imminent, citing inflationary pressures. It also started tightening some bank credit.

"Both the government and the Reserve Bank of India are working in close cooperation to evolve appropriate policy," Mukherjee said. "There is no area of disagreement and divergence in view between the RBI and the government."

He said that while G20 nations had decided to coordinate exit policies, the realities in each country were different.

"Coordination does not mean synchronization," he added.

(Reporting by Sujata Rao; Editing by Andrew Torchia)