The International Monetary Fund says India needs to lower trade barriers and improve its business climate if it wants to maintain economic expansion and attract foreign investments.
A new report by the IMF says that more than a decade after India began opening its state-controlled economy, the conditions for doing business are still difficult and tariffs remain high.
The report also says New Delhi needs to further liberalize trading rules, and that although the country's exports are growing steadily, they only represent one percent of the global economy. India's economy grew at around seven percent in the financial year that ended last month. That is lower than last year's growth of over eight percent, but still among the fastest in the world.