UPDATE 1-Indian adviser calls for coordinated fiscal stimulus

WASHINGTON Fri Nov 14, 2008 10:59pm EST

WASHINGTON Nov 14 (Reuters) - A top Indian economic policy-maker said on Friday he hopes leaders of major world economies will endorse coordinated fiscal stimulus plans to combat global recession during their meetings here.

"The most important thing right now is to counter the recessionary tendencies that people are talking about," Montek Singh Ahluwalia, deputy chairman of India's Planning Commission, told a news conference.

"What we are calling for is a coordinated fiscal stimulus. We have to see what response that elicits tomorrow, but it's certainly our view that if we are facing the most serious crisis in the world economy since the Great Depression, then we need to take a lot of possibly unorthodox and special steps.

Ahluwalia said he hoped Saturday's G20 leaders summit on the global economy and financial markets would end with a communique that makes a strong statement of support for fiscal stimulus actions that would boost confidence in the global economic situation.

He said recessionary conditions in the United States, Europe and other industrial countries were slowing economic growth in India, but added that his country's growth for this year would be impressive compared to many other countries. Second half-growth for India will remain positive, he added. (Reporting by David Lawder; editing by Andrea Ricci and Todd Eastham)