India's Journey from the largest Foreign Aid Receipient to the one of the largest foreign Aid Donor

Recently English news, especially the right leaning sites has made a large issue after India sent its Mars probe and bought its first of many Shinkansen Japanese bullet trains. I was wondering too. Why the hell do the British tax payer spent so much money on that country. So I researched a bit.

Thank God, the 136 Million USD British aid is stopping this year. Secondly I was surprised to find out that India itself donated $1.6 billion this year as foreign developmental aid. And its stated to increase further next year. Wait Poverty? Sanitation ? In their own country? Apparanty they spend $600 Billion on development per year in their own country. Some more researce and this: Poverty decreased from 21% in 2012 to 12.4% in 2014, and that to with a increased per day income limit to define poverty.

(Indian Poverty Falls To 12.4%, electricity plays big role).

Poverty in India has dropped stunningly from 21% in 2012 to 12.4%, according to the World Bank. That roughly means that they’ve taken 100 million people out of poverty in just two years, and it’s mostly thanks to electricity.

Comming back to aid, take a look at this:

Devex analysis reveals that the budget sets aside 84 percent of the $1.6 billion Indian foreign aid envelope in 2015-16 to South Asia, down slightly from 86 percent the year before. The top recipient of Indian aid, Bhutan will claim 63 percent of Indian aid in 2015-16, which is unchanged from the previous year

In latest Indian budget, aid spending dwarfs aid receipts(2014)

India's 2015-16 foreign aid budget: Where the money is going

I was actually quite shocked! Who knew?

Simply:

*India received around $600 Million in 2014 as foreign aid. $136 Million British.

*India spent around $1.6 Billion in 2015 as foreign aid.

*India spent $600 Billion on its own national developmental projects.

*India's poverty rate decreased from 21% to 12.4% in 2 years, lifting 100 million of its own people out of poverty.

I would say, that is some impressive stuff there.

a reply to: asen_y2k

Very impressive, and shows they know where their priorities are in that country. Wired did nice piece about how their energy future can make or break the human future. Makes alot of sense. There are still almost as much people without electricity in India as the total population of the United States, but they are working on it and making plans.

originally posted by: AmericanRealist
a reply to: asen_y2k

Very impressive, and shows they know where their priorities are in that country. Wired did nice piece about how their energy future can make or break the human future. Makes alot of sense. There are still almost as much people without electricity in India as the total population of the United States, but they are working on it and making plans.

I am currently living for the last 2 years in India and exposed to their media. I have the perfect thing for you. Its a dashboard which records electrification of their villages. Their target to provide electrification to 100% of its citizens by 2017. This app gives minute by minute updates on how many more vilages have been electrified in the past few days. Its extraordinary just to see it real time. There are mobile numbers and adressed provided for people to verify.

News Link

And the dashboard with the data itself

My favourite part: 27% of villages without electricity have been electrified. 488 days left. 140 villages (approx) are being electrified per week.

a reply to: asen_y2k

*India received around $600 Million in 2014 as foreign aid. $136 Million British.

Because in 2014 we had cut the aid India receives due to its “emerging donor” status , in 2010 we gave over £1billion as with most other years , the UK has pumped money into India for decades , nice to know it's appreciated.

originally posted by: gortex
a reply to: asen_y2k

*India received around $600 Million in 2014 as foreign aid. $136 Million British.

Because in 2014 we had cut the aid India receives due to its “emerging donor” status , in 2010 we gave over £1billion as with most other years , the UK has pumped money into India for decades , nice to know it's appreciated.

India and Britain shares a very friendly relationship even after its tumultuous past. Current generations in India with whom I have interacted with have practically no hostile feelings to any of its former colonial powers. All they seem to care is to develop their own economy and progress as a nation.

a reply to: asen_y2k

Thank God, the 136 Million USD British aid is stopping this year.

I wish India well with her development and hope it is both sustainable and reaches down to the poorest.
I applaud Marendra Modi for his diplomatic efforts and decreasing tensions with Pakistan.

As a tax payer in the country that has helped India the most over the years I'm glad aid is stopping , it means the decades worth of aid we gave did what it was intended to do and helped India to reach her potential.

Yet most people in rural India crap in the open.

Government aid is one thing, but India is still a major recipient of charity aid that is directed at the parlous state of rural sanitation, clean water and basic healthcare, including women's health.

I like India and support the largest democracy in the world. However, it has a long road to travel.

originally posted by: paraphi
Yet most people in rural India crap in the open.

Government aid is one thing, but India is still a major recipient of charity aid that is directed at the parlous state of rural sanitation, clean water and basic healthcare, including women's health.

I like India and support the largest democracy in the world. However, it has a long road to travel.

Hear hear. Indeed a long road to travel for India. That is the hard truth! For a country the size of 1.3 Billion people, one must say their progress is quite good. After British colonial rule rule for 200 years which reduced their GDP from 22% of the worlds share to less than 1%, India after Independence has progress massively.

In the last 2 years India lifted 100 million people out of poverty. I say give India another 20 years. That nation will be unrecognisable.

a reply to: asen_y2k

One of the more important to take from this data you have presented to us, is the opportunity for us as citizens to capitalize and profit from these endeavors. We can direct portions of our IRA's into the companies that will be fueling these initiatives over the next decade(s) as well as direct stock purchases of the energy sector companies that will be involved. The following is from the article I sourced in my first post:

Providing power to these literally powerless people is “a priority in every imaginable way—human, economic, and political,” says Navroz Dubash, a senior fellow at the Centre for Policy Research in New Delhi, who is a lead author of reports for the UN’s Intergovernmental Panel on Climate Change. Partly in consequence, India’s demand for electricity is widely expected to double by 2030. The Modi government is determined to satisfy that demand. In fact, Modi—arguably the most powerful Indian prime minister in three decades—is pursuing this goal by charging down not one but two paths, each fraught with difficulties.

The leaders have committed on record that this is going to happen, is happening, and is happening fast. And when growth happen fast, the potential profits will come and go just as fast.

Increasing output will require transforming the corrupt, hidebound state enterprise Coal India and moving as many as a million people out of the way to extract the coal. To generate electricity from it, India plans to build 455 new coal-fired electric power plants, more than any other nation—indeed, more than the US now has.

Although we can certainly do well by investing in their solar projects, it is clear to the leaders in India are going to utilize the abundant coal industry to realize their goals as soon as possible.

Although Coal India being the biggest player, it cannot simultaneously realize the number of projects in the time allotted. Maybe a bunch of independent operations will fill the role, generating wonderful ROI's on their IPO's as well as fetching a good sell premium upon merger/buyout and consolidation.

Yes the inner capitalist in me yearns to hit this market. I am only just starting to learn how to even buy into a company traded on a market on the other side of the world, but I will get there. Keep us updated.

originally posted by: gortex
a reply to: asen_y2k

*India received around $600 Million in 2014 as foreign aid. $136 Million British.

Because in 2014 we had cut the aid India receives due to its “emerging donor” status , in 2010 we gave over £1billion as with most other years , the UK has pumped money into India for decades , nice to know it's appreciated.

Just read this, thought it might interest you:

From Jan 1, 2016 UK to stop financial aid to India