Future of DFID's Programme in India
Closed
What the inquiry looked at
“India is the world’s fourth largest economy, based on purchasing power, and has qualified as a middle income country since 2007. India is now also an aid donor in its own right. However despite its impressive economic growth rates, India remains home to over 400 million or one third of the world’s poorest people living on less than $1.25 per day. India also has high rates of maternal and infant mortality. The Department for International Development’s (DFID) will provide India with £825 million for the period 2008-2011 making it DFID’s largest bilateral programme. DFID’s programme aims to help India reduce poverty and achieve the Millennium Development Goals (MDGs). DFID works at the national level and in focus states with high levels of poverty. DFID is the largest donor in India. India is a member of the Commonwealth, and has a strong relationship with the UK including through the UN, the G20, the World Trade Organisation and the international financial institutions and regional banks. In June 2010 DFID announced a review of all its bilateral programmes. It intends to focus on fewer countries and to ensure that aid is targeted where it can do most good. Invitation to submit Written Evidence The Committee invites written evidence on the following points: Whether DFID’s programme in India has had a significant effect on reducing poverty and meeting the MDGs at national and state levels; DFID’s ability to act as a catalyst for other donors, to demonstrate best practice and influence wider development outcomes in India; What should DFID’s role be in the wider relationship between the UK and India? The deadline for submitting written evidence is 22 November 2010 Written evidence submitted should: If possible, be provided electronically in MS Word or Rich Text format by e-mail to indcom@parliament.uk . If submitted by e-mail or e-mail attachment, a letter should also be sent validating the e-mail. The letterhead should contain your full postal address and contact details Begin with a one page summary if it is longer than six pages Have numbered paragraphs Avoid the use of colour or expensive-to-print material. Submissions can also be sent by post to International Development Committee, House of Commons, 7 Millbank, London, SW1P 3JA. A guide for written submissions to Select Committees may be found on the parliamentary website at: http://www.parliament.uk/commons/selcom/witguide.htm Please also note that: Material already published elsewhere should not form the basis of a submission, but may be referred to within written evidence, in which case a hard copy of the published work should be included. If a number of published documents are sent to accompany written evidence, these should be listed in the covering email. Written evidence submitted must be kept confidential until published by the Committee, unless publication by the person or organization submitting it is specifically authorised. Once submitted, evidence is the property of the Committee. The Committee normally, though not always, chooses to make public the written evidence it receives, by publishing it on the internet (where it will be searchable), by printing it or by making it available through the Parliamentary Record Office. If there is any information you believe to be sensitive you should highlight it and explain what harm you believe would result from its disclosure. The Committee will take this into account in deciding whether to publish or further disclose the evidence. It would be helpful, for Data Protection purposes, if individuals wishing to submit written evidence send their contact details separately in a covering letter. You should be aware that there may be circumstances in which the House of Commons will be required to communicate information to third parties on request, in order to comply with its obligations under the Freedom of Information Act 2000. Select Committees are unable to investigate individual cases.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The test of whether the UK should continue to give aid to India is whether that aid makes a distinctive contribution to poverty reduction. The Government of India has primary responsibility for this and has already made significant progress—reducing poverty levels from 60% in 1981 to 42% in 2005. India’s economy is growing and it has recently entered the World Bank’s middle income group with a per capita income of $1,170. Nevertheless large pockets of poverty remain. Over 400 million people live on less than $1.25 a day and 800 million on less than $2 a day. However, total aid to India amounts to only 0.3% of the country’s GNP, and the UK’s direct contribution is a tiny proportion of this (0.03% of GDP at PPP rates). Our aid can only have a marginal impact. We are persuaded to support continuing the aid programme in India up to 2015, after which the relationship must change.
DFID will continue to provide aid to India—£280 million a year for the period 2011–15.
However, it plans to make some changes to its programme—focusing primarily on three of the poorest states, Bihar, Madhya Pradesh and Orissa, changing the sectors it prioritises and putting 50% of its budget through the private sector by 2015.
We support the decision to focus on the poorest states provided this is supported by the Government of India. We recommend that DFID should allocate increased resources to sanitation, malnutrition, maternal and child health, and social exclusion. Sanitation is a first step to improvements in health, yet DFID spends only 1% of its budget on this.
Investments in sanitation should be accompanied by a focus on hygiene education. Poor sanitation is linked to poor nutrition which DFID has identified as a focus sector. DFID must ensure these links are acknowledged in its work.
Scheduled castes and tribes continue to be discriminated against in India. This is widespread, and unless it is challenged, these groups will not be able to take advantage of opportunities to improve their lives. DFID should focus more widely on social exclusion.
We support pro-poor private sector development. However, DFID’s proposal to fund it needs to be more carefully thought through. DFID should identify specific sectors and projects which the private sector would do best, before committing such a large percentage of the budget to it.
The Government aims to forge a new enhanced partnership with India which we support.
There are mutual benefits from cooperation in trade and investment, responses to climate change and education for example. However DFID must ensure UK Government policies help protect the poorest and reduce inequalities. DFID should also establish a “Forum for Development Dialogue” with the Government of India to share best practice.
Assuming, over the next four years, that India continues to grow at current rates, increases its tax revenue and continues to invest in improved public services, it will have increased its capacity to tackle poverty and meet the Millennium Development Goals. DFID should continue to provide technical assistance where requested but the funding mechanism should change by 2015.
What the government said
8th Report - The Future of DFID's Programme in India
No government response is linked to this report.
8th Report - The Future of DFID's Programme in India - Volume II
No government response is linked to this report.
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 18 October 2010 to its close on 1 April 2012.
- Report 2 reports
What it recommended
The committee's recommendations are not listed here yet. Read them in 8th Report - The Future of DFID's Programme in India ↗ and 8th Report - The Future of DFID's Programme in India - Volume II ↗ on parliament.uk.