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

Centers for Disease Control Admits Ebola Can Be Spread Through The Air

Ebola is a lot easier to catch than health officials have admitted — and can be contracted by contact with a doorknob contaminated by a ... Full story

Boko Haram Terrorists Invade Adamawa State, Besiege Mubi

Hundreds of Nigerian soldiers are reportedly leaving the town of Mubi in Adamawa State, as members of the terrorists’ group, Boko Haram, make advances to ... Full story

Nigeria's First Lesbian Wedding Takes Place In Lagos

The end times are finally here. Some of the things we used to say can never happen in Nigeria are beginning to unfold and unfurl ... Full story

Stephen Keshi Returns As Coach of Super Eagles

Chris Giwa, the Nigeria Football Association (NFA) Chairman who was restored to office on Thursday by a Jos court ruling, said on Monday that sacked ... Full story

Escaped Chibok Girl Reveals How Boko Haram Militants Raped, Beat Them Every Night

He soon began to threaten me with a knife to have sex with him and when I refused, he brought out his gun, warning that ...

Kenneth Okolie, Former Mr Nigeria Eyes Politics

Nollywood actor and model, Kenneth Okolie, has disclosed that dating an actress is the worst mistake an actor can make. The former Mr. Nigeria, who is ...

Pastor Enoch Adeboye Condemns Marriage

 Contrary to what the bible says that a man shall leave his father and mother and hold fast to his wife, and the two shall ... Full story

Senzo Meyiwa, South African Captain And Goalkeeper Shot Dead By Cell Phone Thieves

The South African police have confirmed that its national football team’s captain and goalkeeper, Senzo Meyiwa, 27, have died after being shot at his home ... Full story

TB Joshua To Compensate Families Of Victims $4,500 Each

 The General Overseer of Synagogue Church Of All Nations, Prophet T.B Joshua has said through the church spokesperson, Kirsten nematandani that, the church will be ... Full story

D'banj Strikes It Big With Apple

Dapo Oyebanjo, famously known as D'Banj or Banglee has confirmed that he indeed has a deal with multi-millionaire company, Apple, which involves making a musical ...

Actress Regina Askia Volunteers To Take Care Of Ebola Patients In New York

Ace Nollywood actress/ beauty queen who is now a nurse, Regina Askia has made a brave and touching move to work at a US Ebola ...

Comment on: UK to end financial aid to India 2015

Rate this article

0

Featured author

Paula Obiewkwe

Breaking News

Nigerian celebrities Pray for Ice Prince

Today, Thursday October 30, super talented rapper, and Chocolate City artiste, Ice Prince tops another year on planet earth.The father of one who recently dropped ...

How Majek Fashek Was Dragged Out Of Stage

The annual Felabration may have come and gone, but memories of happenings at the well-attended event linger on the mind of many that thronged out ...

Letter To All My Single Ladies...

Once upon a time, I experienced a very thunderous breakup and for the next couple of weeks, I spent time, copious amounts of time, pouring ...

Things I Don’t Like About My Wife- Brown Igboegwu

Brown Igboegwu, popularly called Brownie is a budding actor who has been in the Nigerian movie industry for a decade and has acted in more ...

Battle Line Drawn Between Bob-Manuel, Tony One Week

A battle line seems to have been drawn between Bob-Manuel Udokwu and Tony Muonagor, popularly called Tony One week. The two stars have indicated interests ...

Tosyn Buknor Finds Love Again After 3 Failed Relationships

One of Top Radio presenters in Lagos, Tosyn Bucknor, aka Area Mama, has revealed that she is currently in a relationship after she earlier had ...

SYNAGOGUE BUILDING COLLAPSE:WITNESSES VINDICATE CHURCH AS CORONER ALLAYS FEARS OF PROSECUTION

As proceedings continue at the Coroner’s Inquest into the cause of the building collapse at The Synagogue, Church Of All Nations (SCOAN), more clarifications are ...

Men’s Thoughts At Lingerie Shows

Honestly, I have no rancour against models or their profession; in fact, they are doing a great job and kudos to them for doing what ...

GIAMA Excites Chigozie Atuanya

Photo Credit: GIAMA Chigozie Atuanya's Igbo language movie, Chetanna, was announced as winner of the Best Indigenous Film at the Golden Icons Academy Movie Awards (GIAMA), ...

Ibinabo Poses With Victorious Falcons

Nollywood actress and president of Actors Guild of Nigeria (AGN), Ibinabo Fiberesima has identified herself with the Super Falcons, who recently conquered Africa at the ...