Press Information Bureau

Government of India

Ministry of Finance

30-November-2012 15:14 IST

Under the India-UK Development Cooperation Programme, the United Kingdom through its Department for International Development (DFID) has provided the following financial aid for the Government sector programmes during the period from 2011-12 and 2012-13 (upto October 2012):

(Rs. in crore)

The Government of United Kingdom has announced on November 09, 2012 that no new financial aid grants will be made to India with immediate effect.  However, the programmes already underway will be completed by 2015 as planned. The technical assistance programmes and the Pro-poor Private Sector Development Initiatives (PSDI) in eight low income States of the Country (viz. Madhya Pradesh, Odisha, Bihar, West Bengal, Chhattisgarh, Jharkhand, Uttar Pradesh and Rajasthan) will continue. 

Percentage of contribution of UK’s financial assistance to India against the Gross Domestic Product of the country during the last four years has been  approximately 0.036 percent. Hence, its discontinuation is not likely to have much impact on the Indian economy.  The projects/programmes already underway will be completed. The Technical Assistance Programme and the Pro-poor Private Sector Development Initiatives (PSDI) will continue to receive assistance from the UK.

This was stated by the Minister of State for Finance, Shri Namo Narain Meena in a written reply to a question in the Lok Sabha today.

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DSM/RS/ka

Foreign aid suspension: UK to stop new grant funding to India while existing programmes and targeted assistance continue. Cessation of new United Kingdom grant aid to India was announced with immediate effect while existing DFID programmes will be completed by 2015; ongoing technical assistance and the Pro poor Private Sector Development Initiative in eight low income states will continue to receive support. Reported disbursements for 2011 12 and for 2012 13 up to October 2012 were provided, and the assistance represented about 0.036 percent of GDP, a level the Government assessed as unlikely to materially affect the national economy. The position was reported in a written parliamentary reply by the Minister of State for Finance.