India said on Saturday that it has lifted state control on diesel prices, in a long-awaited move that economists say will help encourage investment in the country’s struggling fuel industry and reduce the government’s fiscal deficit. The move, announced by Finance Minister Arun Jaitley, is aimed at reducing India’s massive fuel subsidy bill and revamping its economy, economists said. The decision to allow state-run fuel retailers to peg the price of diesel to global market rates comes as India’s new prime minister, Narendra Modi, seeks to streamline the government and make Asia’s third-largest economy more attractive to international investors.