PreviousNext

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

Nigerian Army Apprehended Tailors Who Made Dresses For Boko Haram Terrorists

Six Boko Haram notorious kingpins were tracked and captured today, Thursday 28th April 2016, by the gallant Nigerian army in a renewed onslaught on the ... Full story

Igbo Youths Threaten Fulani Herdsmen

Following the massacre of no fewer than 40 people of Nimbo community in Uzo-Uwani Local Government Area of Enugu by Fulani herdsmen last Monday, Igbo ...

Fulani Herdsmen Saga: Northern Governors Defend Fulani

The 19 Northern Governors have taken a strong exception to the branding of perpetrators of crimes around the country as Fulani. The Governors, rising from a ...

Oba Of Benin's Death Is A great National Loss Says President Buhari

President Muhammadu Buhari on Friday said he received the news of the passing away of the highly revered traditional ruler of Benin Kingdom, Omo n’Oba ...

See Photo Of Fulani Herdmen And Their Cattle Roaming In Front Of Central Bank Of Nigeria In Abuja

A blog reader sent in this picture, What he said after the cut: These guys really feel they can do what even they feel like doing ...

Transition Monitoring Group Reveals: Jonathan’s Agents Offered Us N2 Billion Ahead of 2015 Elections

The Transition Monitoring Group (TMG) – a coalition of over 400 civic organizations –alleged yesterday that agents of the Jonathan administration offered it a bribe ...

Read How Dog Brought Home A Week Old Baby In A Plastic Bag From A Dumpster

Everyone knows Pui, the heroic dog, in his rural Thailand town, because he saved the life of a premature baby! It was an usual hot day. ...

Enugu Attack: Why Do We Call Attackers Fulani, But Not Kidnappers Igbo Says Governor

– Northern governors have condemned the recent attacks in Agatu and Enugu – The governors however said it was wrong to label the criminals as Fulani – ...

Nigerian Army Plans To Exhume Bodies Of Our Members Buried In A Kaduna Mass Graves Says Shi’ites

The Islamic Movement in Nigeria (IMN), popularly known as Shi’ites, has alleged that the Nigerian Army is planning to exhume bodies of their members allegedly ...

IPOB Cries Out: South East Governors Have Sold The Igbos

The Indigenous People of Biafra, (IPOB) has condemned the South East governors and politicians of trading off Ndigbo course for personal and selfish political interest. The ...

Tiwa Savage’s Husband Tunji 'Teebillz' Balogun Tries To Commit Suicide On The Lekki- Ikoyi Toll Bridge

When Teebillz shared his suicide note Thursday morning on Instagram while pouring his heart out about the demise of his marriage to Tiwa Savage, many ... Full story

Comment on: UK to end financial aid to India 2015

Rate this article

0

Breaking News

Video: Watch How Davido And His Crew Punch A Fan In London

Well - Guess what Davido can do!? He can sing and also fight, peep video of him trashing up a fan in London   ... Full story

Tiwa Savage Cries: Says I Never Cheated On My Husband (Watch Full Video Interview)

In an exclusive interview with Azuka Ogujiuba, ThisDay Editor, which was covered by Pulse TV, Tiwa Savage addressed the allegations, and made emotional revelations about ...

TeeBillz Marriage In Crisis:Read Shocking Revelations Made By Tiwa Savage

In a lengthy chat with Pulse TV yesterday, Tiwa Savage  addressed the controversies and rumors about her marriage and the singer revealed 18 shocking things ...

My Marriage Was A Mistake Says Tiwa Savage

Tiwa Savage confessed that her marriage to Tunji BALOGUN was a mistake . This shocking confession was contained in the interview conducted by ThisDay’s Azuka Ogujiuba. She ...

REVEALED: Tiwa Savage's Filing For Divorce Was The Cause Of Tbillz Suicide Attempt

Mavins First Lady and African Pop Diva, Tiwa Savage reportedly filed for divorce from husband Tunji Balogun last week Monday, citing irreconcilable differences and infidelity ...

Watch Vector Open Up About The Ycee Diss And His New Project

Vector tha viper is on the hot seat this time talking about his music, relationships and supposed beef with Ycee. Talking points also include collaborations ...

Super Eagles Ogu Shares Lovely Picture Of Pregnant Wife

Hapoel Be’er Sheva midfielder John Ogu has shared an adorable picture of himself and his heavily pregnant wife Chiugo Akaolisa Ogu on Instagram. Ogu who has ...

Mary Onyali Fears Nigeria Might Fail Again At Rio Olympics

Former Nigeria athlete, Mary Onyali, has expressed fears over Nigeria’s medal prospects at the forth-coming Rio Olympics, highlighting inadequate planning as a major reason for ...

Nollywood Celebrities Hosted In Amsterdam By KLM Airline

Top Nollywood actors were yesterday, April 28, hosted at the Netherlands’s Kings Day celebration in Amsterdam, Netherlands. The Royal Dutch airline sponsored trip was led by ...

Redknapp Expected To Be Named New Super Eagles Coach

Former Tottenham Hotspur boss Harry Redknapp has been identified as the strongest candidate to be the new head coach of the Super eagles in a ...