Finance minister Pranab Mukherjee and ICICI Bank CEO Chanda Kochhar in New Delhi on Tuesday. Picture by Rajesh Kumar

New Delhi, Nov. 10: Finance minister Pranab Mukherjee today said the government would focus on domestic demand until key developed markets recovered and continue with the stimulus for some more time.

“In due course we shall have to take corrective measures (phasing out of fiscal stimulus), but still I do feel that a strong domestic demand is necessary. It (stimulus) will continue for some more time,” the finance minister said at the India Economic Summit here.

“There is a need to generate a strong domestic demand till a robust recovery takes place all over the world, particularly in the developed economies,” Mukherjee said.

He emphasised government expenditure in agriculture and infrastructure, including roads and power.

Mukherjee’s statement seemed to be subtly different from Prime Minister Manmohan Singh’s declaration at the summit about the government rolling back the stimulus from next year.

On Sunday, Singh had inaugurated the summit, which is organised by the World Economic Forum and the CII.

Analysts said that Mukherjee and the Prime Minister had actually agreed on rolling back the tax sops from next year’s budget but would continue with the export reliefs and spending on infrastructure, agriculture and social schemes.

Mukherjee said a return to fiscal consolidation was on the government’s agenda as indicated by the Prime Minister, but till a robust recovery takes place in the developed countries the support would have to continue.