Last week, Foreign Secretary Nirupama Rao told the ministry that "internal discussions" within UK's Department for International Development -- which accounts for over 80% of all bilateral aid to India -- were "to limit the aid further and channelise it to specific projects of their choice in certain states instead of routing it through the Central government".
"Rather than wait for such a situation to develop... it would be better if our decision not to avail any further DFID assistance with effect from 1st April 2011 could be conveyed to the British side in an appropriate manner at the earliest," she wrote to Finance Secretary Ashok Chawla.
Ahead of Cameron's visit, India had considered rejecting DFID offer in view of the "negative publicity of Indian poverty promoted by DFID".
Source: The Indian Express
