For several years India was the enormous beneficiary of the British overseas aid but not anymore. From January 1, 2016, India will no longer receive financial aid from the UK, a decision which was taken by the British government in 2012 after a domestic outcry about India's growing economic status.
In 2012, UK International Development Secretary Justine Greening had announced that Britain would stop sending financial assistance to India by the end of 2015. India’s then India’s Finance Minister and the present President Mr. Pranav Mukherjee, in the response had 'famously' said then that his country “does not require” British aid, describing it as “peanuts”.
Importantly, India’s "rapid growth and development progress in the last decade" has made British aid unnecessary, although some "technical assistance" will continue. The Indian economy may be motoring ahead, growing at around 7% a year, and India may now be formally a middle income nation although the country is still home to a third of the world's poorest people. About 300 million Indians live on less than $1.25 a day.
India is also a momentous donor of international aid. Indian aid donations first exceeded receipts in 2012. During 2016, the total aid received by India is expected to drop to $205 million, while India will be donating over $1.50 billion. So India will be a net donor of over $1.30 billion in aid during 2016.
Indian External Affairs Minister Sushma Swaraj welcomed the decision, stressing that Britain finally perceived India’s economic strength.