The UK will continue to provide India over One billion pounds until 2015 despite political pressure to reduce aid to the booming Asian giant. UK's international development secretary Andrew Mitchell was quoted as saying by the Financial Times that there will be more investment in private enterprise. Mitchell's comment, which came a day before formal announcement, is likely to infuriate some MPs who see no justification for the aid, while slashing defence or anti-poverty spending at home. There were demands to cut aid to India due to the country's booming economic growth and reports of corruption in the use of British funds. A review of UK's overseas aid policy was launched after the David Cameron government took office. The report questioned financial assistance to India, saying it is growing at 8.5 per cent a year, gives aid to Africa, boasts more than 1,26,000 US dollar millionaires and is one of only six nations with satellite launch capability. However, Mitchell describes a development paradox, in which poverty remains rife and India has a third of the world's malnourished children. He said, India has more poorpeople in it than the whole of sub-Saharan Africa. He said, the bulk of the programme will be targeted on three poor states: Bihar, Madhya Pradesh and Orissa.
News On AIR | February 14, 2011 5:07 PM
UK to continue to provide India over One billion pounds until 2015