The government and political parties have dismissed the US President Barack Obama's concerns over what he called deteriorating investment climate in India.

Corporate Affairs Minister Veerappa Moily said that certain international lobbies are spreading such stories and the US President is not properly informed about the country's strong economic fundamentals.

Mr Moily told reporters in Bangalore on Sunday that the perception of deteriorating investment climate in India is not based on economic parameters, but on certain impression of few individuals, entrepreneurs and investors.

The Minister said, there is no crisis in India, whereas the US and other countries faced problems not once but twice in 2008 and 2010. He said, not even a single financial institution collapsed in this country, whereas many such things have happened in the US and other countries.

Opposition parties also criticised Mr Obama for his remarks that India prohibits foreign investment in too many sectors. BJP leader Yashwant Sinha said that the country cannot open its markets just because the US President wants it.

CPI-M leader Nilotpal Basu also echoed similar sentiments. He said, the US wants India to open up its economy and market on their terms and they are creating this pressure for the purpose.

Samajwadi Party leader Shahid Siddique said New Delhi will not take a decision in support of the United States which wants their market to expand in India.

In an interviwe to PTI on Sunday, Mr Obama had said that India prohibited foreign investment in too many sectors such as retail.

The US President had also expressed concern over what he called deteriorating investment climate in India and favoured another wave of economic reforms.