The Organization of Economic Co-operation and Development or OECD, has recommended relaxation of norms of Foreign Direct Investment or FDI in banking and insurance sectors.
While praising India's policies, OECD's Investment Policy Review of India said that the policies were framed to encourage investment as a part of market-oriented reforms since 1991 and these resulted in bringing about prosperity. It noted that many sectors reserved for the government were opened to private enterprise, adding import-substitution and protectionism were replaced by an open-trade regime.
However, it said that India's policy framework for FDI still remained restrictive, compared to other OECD countries. It pointed out the need for investment in infrastructure which would ensure higher living conditions and more productivity.
While launching the report in the presence of Indian Commerce Minister Anand Sharma in New Delhi, the OECD Secretary-General Angel Gurria praised India for its performance and progress last year despite the impact of global crisis. He called for reducing the gap between the poor and rich in the country, besides stressing the need to reverse it through measures at both national and state levels.
OECD recommended regular review of FDI restrictions in areas to ensure that the costs do not outweigh their expected benefits. It called for evolving a system that could compare FDI figures for states and union territories as the basis for cross-state monitoring of FDI performance. It also pointed out the need for strengthening corporate transparency and responsibility to bring India close to internationally-recognized standards and practices.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.