Britain’s Government said yesterday it will stop all aid to India in 2015 and slash its remaining handouts, bowing to domestic pressure over its foreign development budget at a time of austerity.

International Development Secretary Justine Greening said the move, which will save Britain around £200 million (€252 million) from 2013 to 2015, recognises India’s “changing place in the world”.

PM David Cameron has faced growing opposition at home to the aid commitment to India, with commentators often pointing out that Britain’s booming former colony is able to fund its own space programme.

Greening said that after visiting India this week with Foreign Secretary William Hague, the relationship with India would now focus on “trade not aid “India is successfully developing and our own bilateral relationship has to keep up with 21st century India.”

Conservative Cameron’s coalition Government is trying to save money as part of its efforts to reduce a record deficit.

British aid to India was reduced last year as part of the widespread austerity measures but still committed London to spending £280 million a year until 2015.

Total spending between 2013 and 2015 will now be £200 million less than had been planned previously, although Britain would complete all of its aid programmes in India, Greening said. (AFP)