International development secretary, Justine Greening has announced that all financial assistance from the UK to India will end from 2015. India will not get any aid from Britain further and Britain can save up to £200. British support for India will in future be limited to skills sharing in area areas such as trade and investment and health.
Britain stops aid to India – why?
The decision to end aid is a triumph for a group of largely Conservative MPs who have been arguing for some time that giving money to India can’t be justified while spending at home is being cut so dramatically. This argument is on the basis that India has got more billionaires than Britain and the successful Mars mission.
The Indian finance minister, Pranab Mukherjee, last year said the country no longer wanted or needed the British aid, describing the money as “a peanut in our total development expenditure”. Interestingly, Britain gave India nearly £300 million in financial aid last year despite pledges by ministers to end the handouts.
Mr David Cameron, Prime Minister of UK said: “We are going to enhance that capability by refocusing our aid spending so we will target at least half of DFID’s budget on stabilising and supporting broken and fragile states, and do much more to help refugees closer to their homes”.