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

70% of candidates fail 2014 WASSCE

Of the 246,853 candidates who sat for the November/December 2014 West African Senior School Certificate Examination, only 72,522 candidates, representing 29.37 per cent, obtained credits ... Full story

Mr. Ibu Shows Off Massive Weight Loss In New Photos

Well, Mr. Ibu seems to have lost quite a lot of weight lately! Most likely for height reasons, he's channelling Rick Ross ... Full story

Boko Haram Kill 32; Kidnap 185 Women And Children In Borno

Multiple sources have it that Boko Haram, the deadly sect waging an insurgency against the state have killed 32 people in Borno State, and kidnapped ... Full story

Alhaji Bappa Tilde, Ex-Bauchi Accountant-General Shot Dead

Former Accountant-General of Bauchi State, Alhaji Bappa Tilde who was abducted last Saturday has been killed. According to residents, Tilde, 72, was brought by his abductors ... Full story

Inmate dies in prison after six adjournments to his trial

A man who was remanded in prison for attempting to steal his brother's money from an ATM has died due to the ineptitude of prison ... Full story

Seyi Shay Grabs Wizkid's Crotch in New Video

So, Seyi Shay and Wizkid featured in this new video titled 'Crazy', and Seyi Shay seems to have done something very crazy; she grabbed Wizkid's ... Full story

Couple tortured by police sue for N100m

The couple brutalized by a police corporal in Lagos, Ejeh and Grace Smith, is suing the police authorities for damages. The Lagos couple that was brutalized ... Full story

Boko Haram Abducts 185 Women, Kills 32

Boko Haram insurgents kidnapped at least 185 women and children, and killed 32 people in a raid in northeastern Nigeria this week, local officials and ... Full story

Gospel Musician Kenny Saint Brown Says APC Stole Her Mandate For Lai Mohammaed's Son

Gospel singer, Kenny Saint Brown does not believe she lost out in the APC primary elections but rather her mandate was stolen Gospel singer, Kenny Saint ... Full story

Boko Haram Threatens To Attack Emir of Kano, Muhammadu Sanusi II

Boko Haram leader, Abubakar Shekau, has threatened to attack the Emir of Kano, Muhammadu Sanusi II, in retaliation for the Emir’s call on Kano residents ...

Police arrest power-drunk cop’s team members in the Lekki area of Lagos State

The police have arrested other six cops at the scene of the torture of a couple in the Lekki area of Lagos State. A police source ... Full story

Comment on: UK to end financial aid to India 2015

Rate this article

0

Featured author

Reinetta Zachary

Breaking News

AGN President, Ibinabo Gushes over Husband after Stepping out of Church (Photos)

‘He, who finds a wife, finds a good thing and obtains favour from the Lord.’ This is the current tale of Actors Guild of Nigeria’s ...

Photos From Daystar Christain Centre Christmas Carol

Members, friends and families worshiped God in an atmosphere of joy and laughter on Sunday December 14th at one of the most anticipated Carol Concerts, ...

If Your Wife Was Fat, You Wouldn’t Have Married Her…..Fan Blast Paul Okoye

Social media banters has hit Nigeria’s adored singer, Paul Okoye after he posted a picture of girl who attempts to use scissors to cut her ...

Why My Marriage Crashed – Alex Okoroji

Alex Okoroji, daughter of ex-musician and PMAN President, Chief Tony Okoroji has revealed why her marriage crashed like a tokunbo car engine. The actress confessed that ...

Married Chief Tony Okoroji's Daughter Back To Spinsterhood

While some celebrities are happily tying the knots in 2014, others are as well walking out of their marriages and long relationships. The latest to return ...

VIDEO: Daddy Showkey ft. HarrySong – Asalamabeez

Story by Nigeriafilms.com Last Updated:7 minutes ago Brand new visual from Nigerian music icon, Daddy Showkey. He teams up with Five Star Music’s HarrySong on this one. ...

Exclusive Marriage Update: AGN President, Ibinabo Finally Signs Marriage Documents

Nigeriafilms.com correspondent at the ongoing White wedding of the Actors Guild of Nigeria’s President, Ibinabo Fiberesima, says the wedding has commenced immediately after the marriage ...

Oil workers suspend nationwide strike

Oil workers under the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Worker (NUPENG) ...

Onigbinde urges Keshi to quit Eagles

Former Nigeria coach, Adegboye Onigbinde, said he has personally written to out of contract Super Eagles coach, Stephen Keshi, to quietly seek greener pastures elsewhere.Several ...

Pastors Are Ogboni Members – Otunba Meshioye

OTUNBA-FRACIS-OLUWAGBENRO Otunba Francis Meshioye, Olori Oluwo of the Reformed Ogboni Fraternity (ROF) made some revelations recently. The supreme leader of Ogboni in Nigeria said some popular ...