International aid

Aid is money given by a developed country to a developing country to help with development. It can come in a variety of forms:

  • Short-term aid – needed after sudden disasters.
  • Long-term aid – money given for a specific project over a long period of time.
  • Tied aid – aid that is given with conditions attached.
  • Charitable aid – raised by donations from charities such as ActionAid.
  • Bilateral aid – when one country gives money to another. Only two countries are involved.
  • Multilateral aid – when more than one country gives money, eg through the World Bank.

UK aid to India

The Geosynchronous Satellite Launch Vehicle, India's largest rocket and unmanned capsule
The Geosynchronous Satellite Launch Vehicle, India's largest rocket and unmanned capsule

India has always been one of the biggest receivers of aid from the UK, with the UK government giving over £200m to the country every year. This money has been spent on projects that have helped the country to progress. UK aid has been used to improve standards of education, health and sanitation in India and for projects to help small businesses.

In 2015 there was an end to this flow of money. The UK government said that India now had a better economy than before and did not need the money. They say that India spends an estimated £600m on its programme to launch rockets into space so it doesn't need aid money any longer. The UK government wants a new two-way relationship with India that would be based on trade and a sharing of technology and ideas.

The loss of UK aid could be difficult for India, particularly as there are still many poor people within the country. However, , India's current levels of economic growth were seen as a key justification for stopping the UK's Department for International Development providing aid to India.