Our £1bn aid to India: A nation with three times as many billionaires as we have
By Gerri Peev
5th February 2011
Britain is to give more than £1billion in aid to India over the next four years, even though it has almost three times as many billionaires as we do.
Ministers defended handing around £280million a year in taxpayers’ cash to one of the world’s biggest economies.
They insist it will re-energise the relationship with the former colony and claim it still needs international aid.
However,
critics pointed out that India is a nuclear power, has its own space programme and is rich enough to donate money to poor African nations each year.
Andrew Mitchell, the International Development Secretary, says Britain will channel its aid to the three poorest states in India.
Speaking on Radio 4, he said it was ‘the right place for us to be’.
He added:
‘They do have a space programme, but on the other hand there are more poor people in India than in the whole of sub-Saharan Africa and the average income of an Indian citizen is only one third of that of a Chinese person.’
The Coalition has already axed aid to economic powerhouse economies such as Russia and China. But Department for International Development sources claim India is ‘different’.
A spokesman said: ‘Our development programme is in transition, but now is not the time to end it completely.
‘We will not be in India forever. But as part of the revitalised British relationship with India, following the Prime Minister’s successful visit last year, our development partnership has an important role to play.’
Despite its immense poverty, India is home to some of the richest people on earth. The wealthiest Indian is Mukesh Ambani, chairman of Reliance Industries and the fourth richest man in the world.
But perhaps the best known billionaire in India is Vijay Mallya, the eccentric 55-year-old owner of the United Breweries Group that produces Kingfisher beer and is behind Kingfisher Airlines.
He also owns a Formula One team, and one of the world’s biggest private yachts - the 312ft Indian Empress.
Sceptics believe much of Britain’s aid is as much about strengthening British trade ties as helping the poor.
In his visit last year, David Cameron lobbied hard on behalf of British business.
The trip led to a £686million aircraft deal for defence contractor BAE Systems and engine makers Rolls-Royce.
Aid to India will be channelled to the states of Orissa, Madhya Pradesh and Bihar, with half the programme going into private-sector schemes.
Much of this cash will be given to the Commonwealth Development Corporation, a controversial quango that paid bosses bonuses and lavish expenses.
But Labour’s former foreign office minister Gisela Stewart said Mr Mitchell had his priorities ‘all wrong’.
She added: ‘We would be better off spending the money on counter-terrorism in Afghanistan or on micro-finance schemes in Bangladesh rather than pouring money into a nuclear power with more billionaires than Britain.’
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