The Government will cut international aid to India because the country’s economic growth means it no longer needs the handouts, International Development Secretary Justine Greening is to announce this week.
Ms Greening is expected to say that the UK’s commitment to India will radically change at the end of the current eight-year aid program.
The UK has committed to donating an average of £280m a year to India’s poorest states until 2015, despite a slight reduction in overall aid to the country.
Critics of foreign aid say India does not need the foreign when it spends tens of millions on a space program and a reported £70 bill annually on myriad programs aimed at reducing poverty.
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”.
Ms Greening is due to travel to India for talks with the government about winding down the aid payments.
It is believed she may divert the money sent to India to poorer countries rather than cutting it from the UK’s overall foreign aid budget.
Britain is committed to increasing aid expenditure to the United Nations target of 0.7% of GDP by 2013.