OECD (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     4th October 2023        

Context: The OECD recently urged India to accelerate financial sector structural reforms by reducing government ownership and liberalizing foreign direct investment (FDI).

Organization for Economic Cooperation and Development (OECD)

  • About: It is an international organization with 38 member countries.
  • Founded in: 1961 to stimulate economic progress and world trade.
  • Headquarters at: Paris, France.
  • Members: The majority of OECD members are high-income economies with a very high Human Development Index (HDI)and are regarded as developed countries. 
  • Aim: Fostering economic development and cooperation and fighting poverty through the promotion of economic stability.

Foreign Direct Investment

  • About: FDI means investment through capital instruments by a person resident outside India in an unlisted Indian company, or in 10% or more of the post issue paid-up equity capital of a listed Indian company.
  • FDI Inflow: India continues to be an attractive destination for foreign investment, ranking as world’s 7th largest FDI recipient in 2021 (UNCTAD).

oIn 2023 (World Investment Report): India and the Association of Southeast Asian Nations (ASEAN) were the top recipients, with a 10% and 5% increase respectively. Asia accounted for over 50% of global FDI.

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