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

Mallam Nasir El-Rufai loses son in Abuja road crash

Tragedy hit the home of the former Minister of the Federal Capital Territory, Mallam Nasir El-Rufai, in the early morning of Tuesday when his son, ...

Blessing Okagbare Wins 100 Metres Gold At Glasgow Commonwealth Games - Video Video

Blessing Okagbare wins women’s 100 metres gold in 10.85 seconds to increase Team Nigeria’s medals haul at the ongoing Commonwealth Games in Glasgow. Okagbare also erased ...

Bomb Blast Rocks Kano Again, Many Feared Dead

Another explosion hit Kano, coming just 24 hours after the state suffered three bomb explosions in different locations. Today’s blast took place at the NNPC ...

Asari Dokubo: "Bomb attack on former Military Head of State was planned by Buhari himself"

This might look weird, but the former militant leader, Dokubo-Asari has alleged that the bomb attack on former Military Head of State was planned by ...

Kano State Catholic Church Bomb Blast Kills 6, Injures 13

2 Bombs went off in northern Nigeria’s main city of Kano, killing 6 people and wounded 13 others on Sunday, a senior police officer said. The ...

19 Yrs Old Ghanaian Girl Commits Suicide After S3x Tape Leaks - Video

The Ghanaian Girl who Became Famous After a video of her and her boyfriend Making Love Hit The internet Allegedly Committed Suicide, Benadicta Yeboah who ... Full story

Nigerian army arrest bomber disguised as woman in Kaduna

The Nigerian Army has apprehended a suspected insurgent in relation with the twin bomb blast that rocked Kaduna on Wednesday. The twin-bomb attacks which resulted in ... Full story

Nigerian man sentenced to death for failing to bribe policeman with N200

A shaft of pain knifed through his facial contours as he recounted the grisly experiences he had in prison for more than 23 years. Prior to ...

US, Canada Condemn Kaduna Bombings

As critiscisms continued to greet Wednesday’s twin bombings in Kaduna metropolis, an Improvised Explosive Device went off at the New Road Motor Park in Kano ... Full story

Nigeria's Nkechi Opara wins first medal in women’s weightlifting at 2014 Commonwealth Games

Team Nigeria on Thursday in Glasgow recorded its first medal at the 2014 Commonwealth Games when Nkechi Opara won bronze in the women’s weightlifting 48 ... Full story

Bishop Oyedepo: Nigeria May Split Soon

Bishop David Oyedepo of the Living Faith Church aka Winners Chapel, has warned that Nigeria is on the verge of breaking up if some issues ...

Comment on: UK to end financial aid to India 2015

Rate this article

0

Featured author

Reinetta Zachary

Breaking News

Don't Have Kids Immediately After Marriage—Fummi Iyanda Advises

Media personality, Fummi Iyanda clocked 43 on Sunday, July 27, 2014 and she took her time to advice young people.The pretty lady urged many to ...

Nollywood Is Bigger Than Oil & Gas Industry—Tinsel Star, Victor Olaotan

Popular Tinsel actor, Victor Olaotan, has disclosed in an exclusive chat with Nigeriafilms.com that the Federal Government needs to invest more in Nollywood in order ...

Nigerian Comedians Are Lazy—Comedian, Kunle Thomas

Wave-making comedian, Patrick Onyeke aka Kunle Thomas, has disclosed that his comedy skit currently showing on television has been in the pipeline for about two ...

Chigozie Atuanya In America To Promote New Movie

Chigozie Atuanya Handsome movie star, Chigozie Atuanya, is presently in the United States of America (USA), Nigeriafilms.com can confirm.It was squealed to us that the actor ...

No Man is Involved in My Radiant Looks--Fast-Rising Singer, J’odie

Fast-rising singer, J’odie, whose real name is Joy Odiete, has disclosed that she never expected her song ‘Kuchi Kuchi’ to be widely accepted because she ...

Ghanaian Actress, Juliet Ibrahim Takes Ebola Awarenes To Social Media

Ghanaian actress, Juliet Ibrahim, has taken to her social media page to advice her fans on the need to be careful of the deadly disease ...

I Can’t Divorce 2Face—Annie Macaulay

Nollywood actress and wife of award winning music artiste, 2face Idibia, Annie, has revealed that she will not allow her children go through the emotional ...

South African Actress, Xolile Tshabalala Joins Rita Dominic As AFRIFF Ambassador

Top South African role-interpreter, Xolile Tshabalala, has been appointed as the Ambassador for Africa International Film Festival (AFRIFF).The pretty lady held a meeting with the ...

Anxiety As BON Unveils Nominees Friday

Ahead of the prestigious Best of Nollywood (BON) awards ceremony, which takes place later in the year; organisers of the event have concluded plans to ...

Juliet Ibrahim Shows Off Killer Curves At Event

Top Ghanaian actress, Juliet Ibrahim, who recently announced her divorce to her fans, was at an event in the United States of America (USA), where ...