P Chidambaram defends India's rules for foreign retailers

Washington: India is defending government regulations that have prompted US retail giant Wal-Mart to hold back on opening superstores there.

Indian officials insist the rules to protect local businesses are not too restrictive for international companies.

India's finance minister spoke on Thursday to a Washington think tank. He says he's confident that one or two large retailers will enter the Indian market by next March, though he didn't name any.

In a politically sensitive move, India last year gave the green light for international companies to open multibrand retail stores. But they have to get 30 percent of their products from local small businesses.

Wal-Mart Stores said on Wednesday it cannot move forward with expansion plans because the regulations make it impossible. That's a blow to India's attempts to attract foreign investment.