UK to end financial aid to India 2015

// News | General | UK to end financial aid to India 2015
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

The UK is to end financial aid to India by 2015, international development secretary, Justine Greening, has said.

British Broadcasting Corporation reports that support worth about £200m ($319m) will be phased out between now and 2015 and the UK’s focus will then shift to offering technical assistance.

 Greening said the move, which will be popular with Tory MPs, reflected India’s economic progress and status.

Giving his reaction, India’s foreign minister Salman Khurshid said: “Aid is the past and trade is the future.”

But charities described the move as “premature” and warned it would be the poorest who suffered.

Until last year, when it was overtaken by Ethiopia, India was the biggest recipient of bilateral aid from the UK, receiving an average of £227m a year in direct financial support over the past three years.

But the UK’s support for India, one of the world’s fastest-growing economies, has been a cause of concern among Conservative MPs, many of whom believed that the UK should not be giving money to a country which has a multi-million pound space programme.

Ministers have defended the level of financial help in the past on the basis of the extreme poverty that remains in rural areas and historical colonial ties between the two countries.

Ms Greening has been conducting a review of all financial aid budgets since taking over the role in September and visited India earlier in the week to discuss existing arrangements.

She said the visit confirmed the “tremendous progress” that India was making and reinforced her view that the basis of the UK’s support needed to shift from direct aid to technical assistance in future.

The announcement that the UK is scrapping aid to India has been long expected and will not have come as a surprise to the Indian government.

UK International Development Secretary Justine Greening was in India early this week to meet senior Indian government officials who were briefed on the move.

India has long held the position that while it welcomes financial aid from overseas from those who choose to give it, it will never actively seek it.

The move is also a recognition of India’s economic transformation.

It’s now the third largest investor in the UK and the largest market for British goods outside the EU.

But much of the UK aid money was used to fund projects in some of India’s poorest areas and some will worry that those at the receiving end could suffer.

“After reviewing the programme and holding discussions with the government of India, we agreed that now is the time to move to a relationship focusing on skillsharing rather than aid,” she said.

“India is successfully developing and our own bilateral relationship has to keep up with 21st Century India.

“It is time to recognise India’s changing place in the world.”

Although all existing financial grants will be honoured, the UK will not sign off any new programmes from now on.

Last year the UK gave India about £250m in bilateral aid as well as £29m in technical co-operation.

By focusing post-2015 support on trade, skills and assisting private sector anti-poverty projects which can generate a return on investment, the UK estimates its overall contribution will be one-tenth of the current figure.

In making the decision, the UK is citing the progress India has made in tackling poverty in recent years. It says 60 million people have been lifted out of poverty as a result of the doubling of spending on health and education since 2006.

India spends £70bn on its social welfare budget, compared with £2.2bn on defence and £780m on space exploration.

From 2015, development experts will continue to work alongside the Foreign Office and UK Trade and Investment but focus on sharing advice on poverty reduction, private sector projects and global partnerships in food security, climate change and disease prevention.

Tagged : No tags for this article

Headlines Newsview all

Underground ISIS Tunnels Discovered In Iraq By Kurdish Troops During Raid

A series of secret underground tunnels, thought to have been hiding ISIS militants, have been discovered in a town in Iraq. The passages were found during ... Full story

HORRIBLE: Nigerian Police Recklessness Driving Crush Little Girl To Death (Graphic Photos)

A little school girl's head has been cut wide open as a result of yet another Nigerian Police recklessness. The images are highly graphic.  According to a ... Full story

ISIS Threaten UK Of Being Part Of Coalition Of Devils (Video)

The film also taunts America claiming that military operations in Afghanistan and Iraq have left troops "demoralised" ISIS have released a chilling new video threatening the ... Full story

Peoples Democratic Party Kicks As APC Plans Primary To Replace Prince Abubakar Audu

The All Progressives Congress has said it is preparing for a fresh governorship primary in Kogi State to elect a candidate, who will replace its ... Full story

EXPOSED: Lagos Traffic Officials Allegedely Issuing Fake Receipts - Drivers

A driver, Tajudeen Omoniyi and his boss, Olusegun Dada, have accused some youths working with the Alimosho Local Government Area, Lagos State, of extorting money ... Full story

Nigeria Can’t Survive Another Civil War - Bode George

A former Deputy National Chairman of the Peoples Democratic Party, Chief Bode George, says the Federal Government and the pro-Biafran agitators must tread softly, adding ... Full story

OMG: We Operate Patients In Reptile-Infested Theatres - University Of Benin Teaching Hospital Doctors Laments

Resident doctors working at the University of Benin Teaching Hospital, Edo State, have decried the state of facilities such as operating theatres, radiotherapy machine, laboratory ... Full story

Chief Hannah Idowu Dideolu Awolowo Is In Heaven - Enoch Adeboye

The General Overseer, The Redeemed Christian Church of God, Pastor Enoch Adeboye, has said he has no doubt in his mind that the late matriarch ... Full story

The MOCHILEROS:The Young Backpackers Risking Their Lives In Cocaine Valley (TRUE LIFE STORY)

A remote valley east of the Peruvian highlands is the perfect place for growing coca. Peru now produces more cocaine than any other country, and this ... Full story

Syrian Rebels Chant 'Allahu Akbar' Over The Body of Dead Russian Pilot After Turkey Shoots Down Jet For Violating Its Air-space

Turkish army has shot down a Russian Sukhoi Su-24 war plane near its Syrian border, officials confirm The Russian jet had violated Turkish air space and ... Full story

Ahmed Mohamed Demands $15m Compensation And Written Apology Following Arrest

The family of Ahmed Mohamed, the Texan schoolboy who was arrested after taking a homemade clock to school, has demanded $15m in compensation and written ... Full story

Comment on: UK to end financial aid to India 2015

Rate this article


Breaking News

How Genevieve Snubbed Me Publicly - Blogger

A popular lifestyle writer, Sisi Yemmie, has narrated how she was recently embarrassed by Nollywood star, Genevieve Nnaji, when she approached the movie icon for ...

'Hello' Cover: Charles Novia Blasts Dayo Amusa, Niyola

Nollywood producer and controversial critique, Charles Novia, is out again and this time, he is after Nigerian artistes doing the cover for Adele’s ‘Hello’ latest ...

Daughter Of Former Taraba State's Governor Releases Pre-Wedding Photos

In few weeks time, Mariya, one of daughters of former Taraba state governor, Danbaba Suntai will be signing the dotted lines with the man of ...

Anita Hogan Floats Production Outfit

Though Nollywood actress, Anita Hogan, has been off the radar for a long time, she has not however left the industry that brought her fame. She ...

Akiin Shuga Supports People Living With Polio

For those who attend high profile social functions, they will be very familiar with the Shuga Band. This band is unarguably the first choice. Founder and ...

Omotola's Hubby Slept With Me Like They Did To His Wife - Fan

**Please Look Elsewhere—Omotola Replies This is currently an on-going drama among followers of star actress, Omotola Jalade-Ekeinde on her Instagram page. The whole drama ensued about two ...

Picture Of Ini Edo Everyone Is Talking About

Controversial Nollywood actress, Ini Edo, is at it again. The actress, who is the CEO of Mimiz Lounge, just released a photo that got her ...

I Still Can't Speak My Language Fluently - Yoruba Actress, Kemi Afolabi

Yoruba actress, Kemi Afolabi, is currently on set of the movie ‘Omo Keshinro’, produced by Omowunmi Ajiboye and features movie stars including popular actor, Arakangudu. The ...

The Rise And Rise Of Omoni Oboli

For Omoni Oboli, 2015 is turning out to be the year of outstanding and mind blowing achievements especially after she was announced as Nollywood/entertainment personality ...

Tonto Dikeh Spotted Again With Baby Bump (Photo)

Controversial actress, Tonto Dikeh, has again been seen with what looks like a protruding stomach. This is not the first the movie star will be ...