India to further liberalize economy: Finance Minister

Indian Finance Minister P. Chidambaram said Wednesday that his country will further liberalize its economy to attract more foreign investment.

Chidambaram told reporters that the Indian economy could still grow 5.5 to 6 percent in the current fiscal year, higher than 5 percent of the previous year, despite slowdown.

India has been seeing a continuous slump of the rupee against the U.S. dollar and shrinking export and industrial production this year.

Meanwhile, some foreign corporations, including U.S. retail giant Walmart, have cancelled plan to invest in India this year due to red tape and other policy barriers.

Chidambaram also said the government would raise import duty on luxury goods while seeking to increase export.

The current account deficit has increased to nearly 5 percent of the GDP due to subsidies for fuel and other strategic goods imported from abroad.

India has recently opened telecom market to 100 percent foreign direct investment while loosening control over foreign competition in defense, aviation and insurance sectors.