NEW DELHI (REUTERS) - India cannot afford to grow at less than 8 per cent per year and needs more reforms to revive growth, Finance Minister P. Chidambaram told parliament on Tuesday during a debate on the state of the country's economy.

Asia's third-largest economy has struggled to lift itself out the worst economic slump in a decade.

The government is trying to introduce a slew of reforms, including freeing up foreign investment in the insurance, pension and defence sectors, and simplifying tax laws to spur investment.