HIGHLIGHTS - Finmin favours continuing fiscal stimulus

NEW DELHI (Reuters) - India has to continue with its fiscal stimulus and is confident of attaining it medium-term fiscal targets, Finance Minister Pranab Mukherjee said on Tuesday.

Following are excerpts from the finance minister's speech at the annual economic editors conference:

GROWTH:

"The recent months have witnessed some clear signs of a turnaround in the growth rate. There is no dearth of liquidity in the economy and inflation as yet is not a pressing area of concern."

"It seems that the two worst quarters since the global financial meltdown in September 2008 are behind us."

"After visible signs of pick-up in industrial growth in the last few months, there are some indications that growth of core industries may have moderated in September 2009. Some uncertainties related to the revival of the global economy also remain. We cannot therefore afford to drop our guard."

MONSOON AND ECONOMY:

"On the domestic front, the impact of the sub-normal Southwest monsoon is yet to be felt, though it is likely that we may fare better than the initial estimates of the decline in food production and agriculture GDP."