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India Emerges as an Aid Donor

This is a joint post with Julie Walz.

Last month, the Indian Express reported that India might not accept aid from the United Kingdom after April 2011. India has been the largest single recipient of British aid, receiving more than €800m (about $1.25b) since 2008. This announcement is perhaps symbolic of the fine line that India is walking between being a “developed” and “developing” country. It is the eleventh largest economy in the world, growing 8-9% annually. But it is also home to one-third of the world’s poor—there are more poor people in India than in all of Sub-Saharan Africa.

Nonetheless, over the past decade, India has quietly transitioned to a donor country, emerging on the world stage as a significant provider of development assistance.