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A review of UK aid policy is to maintain more than £1bn of help for India, in spite of the nuclear-armed states rapid emergence as a world power with its own aid and space programme.
Andrew Mitchell, international development secretary, told the Financial Times that British aid would remain flat at £280m a year until 2015 but shift to more investment in private enterprise.
The decision to rule out big cuts will infuriate some Conservative MPs who see no justification for the aid while slashing defence or anti-poverty spending at home. India is growing at 8.5 per cent a year, gives aid to Africa, boasts more than 126,000 US dollar millionaires and is one of only six nations with satellite launch capability.
Yet, in what Mr Mitchell describes as a development paradox, poverty remains rife and the country is home to a third of the worlds malnourished children. Some people in both the UK and India have been asking whether the time has come to end British aid to India, Mr Mitchell said. In my view we are not there yet.
India has more poor people in it than the whole of sub-Saharan Africa. If youre going to achieve the [UN] millennium development goals, you have to make big progress in India.
The UK bilateral aid review has inflamed postcolonial sensitivities in New Delhi. Indian ministers were indignant over the allegedly patronising review and threatened to decline British money rather than wait for Westminster to decide.
Mr Mitchell will withdraw development assistance from some emerging economies, including Serbia, Moldova, Cambodia and Vietnam. As aid to India falls in real terms while assistance to other nations rises sharply, it will be overtaken by Ethiopia as Britains biggest bilateral aid programme.
By 2015 about half of direct grant aid to India will be replaced by pro-poor private investment including through CDC, the state-owned development finance group. The bulk of the programme will be targeted on three poor states: Bihar, Madhya Pradesh and Orissa.
FT.com / UK / Politics & policy - UK to give £1bn to India in spite of cuts
Andrew Mitchell, international development secretary, told the Financial Times that British aid would remain flat at £280m a year until 2015 but shift to more investment in private enterprise.
The decision to rule out big cuts will infuriate some Conservative MPs who see no justification for the aid while slashing defence or anti-poverty spending at home. India is growing at 8.5 per cent a year, gives aid to Africa, boasts more than 126,000 US dollar millionaires and is one of only six nations with satellite launch capability.
Yet, in what Mr Mitchell describes as a development paradox, poverty remains rife and the country is home to a third of the worlds malnourished children. Some people in both the UK and India have been asking whether the time has come to end British aid to India, Mr Mitchell said. In my view we are not there yet.
India has more poor people in it than the whole of sub-Saharan Africa. If youre going to achieve the [UN] millennium development goals, you have to make big progress in India.
The UK bilateral aid review has inflamed postcolonial sensitivities in New Delhi. Indian ministers were indignant over the allegedly patronising review and threatened to decline British money rather than wait for Westminster to decide.
Mr Mitchell will withdraw development assistance from some emerging economies, including Serbia, Moldova, Cambodia and Vietnam. As aid to India falls in real terms while assistance to other nations rises sharply, it will be overtaken by Ethiopia as Britains biggest bilateral aid programme.
By 2015 about half of direct grant aid to India will be replaced by pro-poor private investment including through CDC, the state-owned development finance group. The bulk of the programme will be targeted on three poor states: Bihar, Madhya Pradesh and Orissa.
FT.com / UK / Politics & policy - UK to give £1bn to India in spite of cuts