"After reviewing the programme and holding discussions with the Government of India this week, we agreed that now is the time to move to a relationship focussing on skills-sharing rather than aid," stated development secretary Justine Greening in a press statement issued on Friday.
By skill sharing UK authorities mean British experts sharing their expertise with India in areas of trade, skills, investment and health. They would provide technical expertise and look out for investment in the private sector. The aid cuts would result in the UK saving around £ 200 by 2015.
UK authorities insist that they would fulfil all commitments that were previously made but India should brace itself for the potential impact such withdrawal of aid could have. Experience of the past has shown that projects where aid has dried up are terminated at short notice without a proper evaluation of impact on communities where the project was run.
The withdrawal of foreign aid agencies also highlights the need for India to invest more in its social sector, with both the government and corporates enhancing existing financial investments. After all, this is only the beginning of more to come.
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