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RPT-India fiscal stimulus to stay, summer crop seen down

Wed Nov 4, 2009 8:14am IST
 
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(Repeats story issued late on Tuesday)

* India will maintain fiscal stimulus

* Summer-sown grain seen down 18 pct on year

* Fiscal prudence needed says finmin

* Return to 9 pct growth could take a year

By Tony Munroe and Rajkumar Ray

NEW DELHI, Nov 3 (Reuters) - India will maintain its fiscal stimulus due to uncertainty arising from a poor monsoon and the global outlook, the finance minister said on Tuesday, as data showed the summer crop could post a bigger-than-expected fall.

But Pranab Mukherjee also said there were distinct signs of pick-up in Asia's third-largest economy, with banks told to boost lending as non-farm credit growth remained an area of concern.

"For the present I maintain that the fiscal stimulus will have to continue, to allow its impact to fully run through the economy," Mukherjee told the annual Economic Editors conference.  Continued...

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