The Organization for Economic Cooperation and Development (OECD) has raised concerns that India's FDI policy can prevent foreign investors to invest in India. The organization indicated that the government needs to open FDI investment in the insurance, banking and retail sectors.

OECD Secretary General, Mr. Angel Gurria said, "Crucial issues for investors have started to be tackled by the Indian government and issues like the intellectual property rights protection has been strengthened."

Mr. Gurria further added that central government has reduced the number of approvals needed for new investment and administrative procedures need to be streamlined at the level of the states.

In the multi brand retail sector, government does not allow FDI, as it may invade the future of millions of retailers in the country.

More than USD 120 billion worth of FDI has flown into Indian market since the year 2000-01. The inflows jumped by 56 per cent to USD 2.3 billion from USD 1.5 billion in the year ago, in the month of October.

The OECD has proposed four areas for future cooperation between India and the club of rich nations, which includes first, undertaking joint future work on green growth, which is an important driver for India's sustainable development, secondly, promoting infrastructure development through public-private partnerships, third, nationally consistent regional FDI statistics and fourth, launch of a review of the regulatory polices of New Delhi.

Mr. Gurria assured that their organization is looking forward to continue cooperation with the Government of India as well with business, labor and other stakeholders in order to promote further improvement in India's regulatory framework for investment.