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India’s transition from Receiver to Donor of Foreign Aid

Discussion in 'World Economy' started by sunny_10, Jan 13, 2013.

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    India’s Transition to Global Donor: Limitations and Prospects (ARI)
    India’s Transition to Global Donor: Limitations and Prospects (ARI) - Elcano

    Theme: India has increasingly sought to expand its activities as a donor, both to reposition itself as an emerging power and to use aid as an instrument for engaging with other developing countries. This ARI looks at the current state of India’s donor programme as regards both its size and scope, identifies India’s role within the multilateral aid scenario and evaluates the challenges and prospects for further growth.

    Abstract: India has expanded its aid programme over the past decade, emerging as a serious donor in certain countries. While the amounts remain small, India’s emergence has focused attention on its possible motives.

    The term ‘emerging donor’ has, over the past decade, become an accepted part of the development world’s lexicon, providing further evidence of the rise of emerging economies. This does not mean that the donors themselves are new. What is new is an increased recognition globally that emerging donors are now a viable complement, and in some cases a substitute, to aid from traditional donors.

    The emergence of these donors is particularly evident now because it occurs at a time when the developed world faces fundamental questions about its own socio-economic model. The financial crisis has undermined confidence amongst OECD countries, put their aid commitments in doubt and given rise to questions about their social welfare and free market models. It is into this vacuum that India has willingly stepped in to offer its own philosophy of development and growth.

    Disbursements by emerging donors were estimated at €8.5 billion in 2006.[1] While small (aid by OECD donors in 2006 totalled €103.9 billion),[2] the competition that these donors insert into what was once an oligopoly of high-income OECD nations has caused much consternation in development circles: China’s aid programme has prompted both awe and fear;[3] India’s stirs a mix of confusion and frustration abroad and pride and criticism at home.

    India started its aid programme soon after independence, with the budget speech of 1958 referring to INR100 million in multi-year grants to Nepal and an INR200 million loan to Myanmar.[4] Since then, but particularly over the past decade, India’s aid programme has evolved substantially, growing both in scale and ambition.

    This paper analyses the evolution of India’s giving in recent years. However, rather than simply describing what India gives and to whom, it primarily looks at three related questions: (1) what are the main characteristics that distinguish India’s aid?; (2) as India grows into a global donor, how is it likely to view multilateral engagement?; and (3) against the backdrop of almost certain growth in giving in the future, what are the challenges and options ahead?

    Analysis

    Defining India’s Giving

    At the outset it is worth establishing what constitutes aid in the context of India’s donor programme. Like most emerging donors, India’s aid-related activities do not follow the traditional definition of the Development Assistance Committee (DAC). Rather, an alternative definition can be considered: spending that furthers India’s standing as a donor. There are three parts to that spending, namely grants and preferential bilateral loans to governments, contributions to international organisations (IOs) and financial institutions (IFIs), and subsidies for preferential bilateral loans provided through the Export Import (EXIM) Bank of India.

    In 2010 India’s aid-related budget allocations were INR36.66 billion[6] (US$785 million in current dollars), a compound annual growth rate (CAGR) of 6.9% from 2004 to 2010. In addition, the EXIM bank in 2008 approved loans and guarantees worth INR352.47 billion with US$3.75 billion in operative lines of credit (see Table 2 and Graph 1).

    These numbers, while big, cannot compare with the giving of China or any of the established donors (China is estimated to have donated US$616 million in 2007 to Africa alone).[7] Thus, India’s ability to use its aid well depend not on how much it gives, but rather on how it directs its aid and what else it offers.

    Towards this end the country’s multilateral budget has increased rapidly. In 2008 and 2009 India spent INR30,719.4 and INR67,630 million respectively (US$2.1 billion) towards increasing its IMF share quota (IMF investment accounted for 66% of the entire budget in 2009). India has also been an enthusiastic donor to the World Food Programme (WFP).

    Secondly, these deficiencies expose India to the entire risk of aid giving, in particular allegations of neo-colonialism (a criticism often directed at OECD donors) or of undermining human rights (a criticism directed at China). Any move to expand direct aid should thus be made with caution
    .


    Conclusions: There is no doubt that recent changes to India’s aid programme mirror a more general re-think of India’s role in the world. Responding to increasing ambitions the programme has evolved to be more global, economic and bilateral. India has sought to engage more closely with the multilateral system, while creating its own niche within the development universe by remaining distinct from other donors.

    China has often used aid to facilitate access to natural resources. India’s approach, by contrast, is described by Kragelund[15] as being ‘on a smaller scale, a bit tardier and not spurring the same dichotomous reactions’. It can be argued that this has prevented India’s giving from realising its full strategic potential. However, that smaller scale and tardiness have also prevented India from tripping up on its own good intentions in what is still an early period of its programme.

    The risk is that as India increases its giving it may try to achieve too many things –political pre-eminence in its vicinity, economic links with East Africa and access to strategic resources (natural or military) in Burma or West Africa–. As that happens, India will expose itself to the same criticisms levelled against China and against traditional donors –a risk amplified by India’s institutional limitations that hinder transparency and accountability–. In short, India’s ambitions will continue to outstrip available resources and capabilities.

    Those limited resources should therefore be used as much to gain direct leverage as to promote India’s private and non-profit sectors in the developing world. Collaboration with other donors can happen, so long as it promotes those general principles. What is needed is a more conscious, transparent and cohesive approach to develop this strategy, rather than the current opportunistic one, because these sectors have always been India’s strengths.

    Dweep Chanana
    Advisor to private and institutional philanthropists with a Swiss private bank

    India’s Transition to Global Donor: Limitations and Prospects (ARI) - Elcano
     
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    Poor Little Rich Country
    BY PATRICK FRENCH | JUNE 24, 2011

    How do you categorize India, a nation that is at once fantastically wealthy and desperately poor?

    [​IMG]

    In May, the Indian government announced that it was giving $5 billion in aid to African countries in the interest of helping them meet their development goals. "We do not have all the answers," Prime Minister Manmohan Singh said, "but we have some experience in nation-building, which we are happy to share."

    The British could be forgiven for being annoyed with Singh's largesse. Britain, after all, currently gives more than $450 million a year in aid to India, and has plans to continue doing so for at least the next few years. The British economy is bumping in and out of a recession, while India's gross domestic product is growing at more than 8 percent a year. This has put the British government in the rather bizarre position of having to sell bonds in order to donate money to Asia's second-fastest-growing economy, even as the latter is itself getting into the philanthropy business.

    The policy is unpopular with most of the British press, which argues that because India has a space program and some flamboyant billionaires, it does not need aid -- especially when Britain cannot really afford it. (When the Labour government was voted out at last year's general election, the departing Finance Minister Liam Byrne left a one-line note on his desk for his successor: "I'm afraid there is no money." It was a joke -- but it was also true.) Nevertheless, Britain still sees itself as a donor nation, with all the obligations and international prestige that entails. This comes in part from a sense of postcolonial guilt: Prime Minister David Cameron spoke recently of a "sense of duty to help others" and the "strong moral case" for giving aid.

    The situation suggests just how dramatically the economic rise of Asia has undone centuries of experience, and the expectation that the West will retain the hegemony it has had for the past 400 years. It is increasingly difficult to classify whether a nation is rich or poor, and terms such as "the Global South" and "the Third World" have to be heavily qualified to take into account the fact that large sections of the population in countries like China, Brazil, and India now have a purchasing power matching that of people in "the West."

    In 1951, the American diplomat Bill Bullitt described the condition of India in Life magazine: "An immense country containing 357 million people," he wrote, "with enormous natural resources and superb fighting men, India can neither feed herself nor defend herself against serious attacks. An inhabitant of India lives, on average, 27 years. His annual income is about $50. About 90 out of 100 Indians cannot read or write. They exist in squalor and fear of famine." Today, it would be hard to make such an absolute statement about India. Poverty certainly remains a chronic problem, but it exists alongside pockets of substantial wealth. An Indian's life expectancy at birth now stands at 67 years, and continues to rise. It is necessary perhaps to think in a different way, and to see that a country like India, like Schrödinger's cat, exists in at least two forms simultaneously: rich and poor.

    The most important change of the last two decades, since the beginning of economic liberalization, has been the transformation of middle-class Indian aspiration. Although the stagnant days of the controlled economy and the "Permit Raj" -- when important decisions depended on a bureaucrat's authorization -- had their own stability, they also stifled opportunity and individual talent. Members of the professional middle class frequently preferred to seek their fortune in more meritocratic societies abroad.

    The modern Indian middle class has a new chance to shape its own destiny in a way that was not previously possible. You can move to your own house using a home loan and live outside the joint family; you can buy a car that is not an Ambassador or a Fiat; you can travel abroad and see how people in other countries live; you can watch your politicians accept bribes or dance with prostitutes on television in local media sting operations while surfing your way to Desperate Housewives or Kaun Banega Crorepati, an Indian adaptation of Who Wants to Be a Millionaire? Businesspeople who have succeeded on their own merits overseas, such as PepsiCo CEO Indra Nooyi, are presented as national heroes.

    Poor Little Rich Country - By Patrick French | Foreign Policy
     
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    Scholarships for African Students in India 2009

    The Government of India, through the Indian Council for Cultural Relations (ICCR), New Delhi, is offering the following scholarships for meritorious South African nationals for the year 2009 – 2010 for studies in India:

    1 (a) Scholarships under the General Cultural 19 Scholarship Scheme (GCSS).
    (b) African Scholarship Scheme. 25
    (c) Indian Scholarship Scheme to mark 01 ‘Africa Day’ in memory of the Late Dr. Amilcar Cabral.
    (d) Commonwealth Scholarship 01
    (e) Indian Scholarship Scheme in memory 01
    of Yusuf Dadoo and Monty Naicker. _____

    Total 47

    2. Detailed information regarding the scholarships and the application forms can be collected from the:

    Indian Cultural Centre, Consulate General of India, Johannesburg 1 Eton Road, Cnr. Jan Smuts Avenue, Parktown, 2193 Tel: 011-482 8484 Fax: 011-482 8492/ 482 4648

    or on our website: www.indiainsouthafrica.com

    3. The completed application form along with supporting documents must reach the above mentioned address by no later than Wednesday, 4 February 2009.

    4. The Consulate General of India in Johannesburg will process applications from the provinces of Gauteng. Mpumalanga, Limpopo Province, North West Province and the Northern Cape.

    Scholarships for African Students in India 2009 : 2013 2014 Scholarships & Financial Aid for Undergraduate, Masters, PhD Postdoctoral Students
     
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    India offers $100 million to help Sri Lanka refugees

    (Reuters) - India offered Sri Lanka on Sunday $100 million to help war refugees return home and rebuild the country's ravaged north, as New Delhi seeks to engage in the island nation's post-war reconstruction and retain influence.

    Home Minister Palaniappan Chidambaram said India was willing to provide the aid package to Sri Lanka if it submitted a "plan of action" on rehabilitation of Tamil civilians.

    "Our concern is that the displaced Tamils should be resettled in their homes as early as possible," the minister told reporters in the southern state of Tamil Nadu.

    A similar aid package was given by New Delhi to its southern neighbor in July after the Sri Lankan government announced victory in a 25-year war against Tamil Tiger separatists.

    The Indian government faces pressure to protect Sri Lankan Tamils, closely linked to about 60 million Tamils in the Indian state of Tamil Nadu.

    Some 260,000 Tamil refugees who fled fighting in the waning months of the war are now being held in military-run camps. Western countries, India and the United Nations are pressing the government to send them home.

    Though the rehabilitation process was slow in the beginning, it was likely to pick up, Chidambaram said after a meeting with Tamil Nadu chief minister M. Karunanidhi.

    Sri Lankan President Mahinda Rajapaksa has said 70-80 percent of the refugees will be resettled by January. So far, about 15,000 have been sent home.

    India, which once wielded undisputed leverage over the Sri Lankan conflict, maintained a largely hands-off approach over the last two years because of the concerns of Tamils at home.

    New Delhi is now keen to ensure that it retains influence in the island and keeps rivals China and Pakistan at arm's length.

    While New Delhi could not be seen openly arming the Sri Lankan military to fight the Tamil Tigers, China and Pakistan had no such difficulty and are known to have helped the Sri Lankan army build up its offensive capabilities.

    China is also helping Sri Lanka build the Hambantota port, which many see as part of Beijing's "String of Pearls" strategy of building relations with countries along sea lanes from the Middle East to the South China Sea.

    India offers $100 million to help Sri Lanka refugees | Reuters
     
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    India commits $500 million aid for West Africa

    NEW DELHI: India Monday committed $500 million for development projects in West Africa as it firmed up a "unique" techno-economic cooperation agreement with eight countries of the region.

    External Affairs Minister Yashwant Sinha announced here New Delhi's readiness to help in the development of the region during talks with his counterparts and officials of eight oil and natural resources-rich countries of the region -- Burkina Faso, Chad, Cote d'Ivoire, Equatorial Guinea, Ghana, Guinea Bissau, Mali and Senegal.

    West Africa has become strategically important with the discovery of large oil reserves in the Gulf of Guinea in the late 1990s as well as other major discoveries inland. Angola, Gabon, Equatorial Guinea, Cameroon and Nigeria lie along the gulf.

    Barring Equatorial Guinea and Chad, which were represented by their foreign secretaries, other countries sent their foreign ministers for the talks.

    The nine countries are to sign a memorandum of understanding (MoU) on a Techno-Economic Approach for Africa-India Movement, TEAM-9 in short, after the talks.

    "It's eight plus one in a way," Sinha told reporters after the talks referring to the fact that India was the only country outside the West Africa region in the grouping.

    "We haven't called it G-9. It's TEAM-9 because it's the team spirit we are emphasizing," he said and described it as a "unique experiment."

    The groundwork for the MoU was done by the foreign secretaries of the nine countries at their meeting here Friday.

    "We have excellent bilateral relations with each of the countries. What we are trying to do through TEAM-9 is to promote not only bilateral cooperation but regional cooperation," he said.

    "We are all determined it will not be confined to an MoU, we will actually translate it into concrete action," he added.

    As tension and political instability grip major world suppliers in the Middle East, multinational oil majors have moved into the region in a big way, signing several commercial agreements and trade treaties with the oil-bearing countries of the region.

    India is reaching out to the region rather late, largely because of distance, the absence of a large Indian diaspora and problems of language since the region is largely French-speaking.

    This is unlike the rest of the African continent where English is widely spoken and where India has made some headway.

    Presently India has diplomatic missions in only five of the eight West African countries in the TEAM-9.

    Sinha said the meeting identified various areas of cooperation ranging from agriculture and pharmaceuticals to health, human resource development and energy.

    Speaking on behalf of the West African countries, Senegal's Senior Foreign Minister Cheikh Tidiane Gadio said: "India is a role model for the developing countries, particularly those in Africa.

    "You have shown you can defeat poverty and development (problems). Frankly we are proud of what you are doing."

    Ghanaian Foreign Minister Joseph Henry Mensah said the "great success" India had achieved in various fields is a "great inspiration for all of us."

    Guinea Bissau's Foreign Minister Joao Jose Silva described India as an emerging world power and said African countries, which in the past maintained their relations with India through European countries, wanted to have direct links

    India commits $500 million aid for West Africa
     
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    India to give Bangladesh $1bn line of credit

    NEW DELHI: Taking the current bonhomie with the Sheikh Hasina government to a new level, PM Manmohan Singh on Monday announced a $1 billion line of credit for Bangladesh, the highest one-time line of credit assistance to any country by India.

    Authorities described the aid as an apt reciprocation to the cooperation received from Bangladesh in dealing with terrorism and insurgency since Sheikh Hasina came back to power.

    The credit will aid infrastructural development in that country, including building railway bridges, supply of locomotives and assistance in dredging.

    Sheikh Hasina assured that no anti-India activity would be allowed to be carried out from the country. Sources said security was one of the most important issues on which the two sides agreed to actively cooperate.

    During his meeting with Sheikh Hasina, Singh said her visit had opened a new chapter in India-Bangladesh ties leading to "complete unity of heart and mind".

    In another goodwill gesture, India said it would stop work on the Tipaimukh dam project which had caused resentment in Bangladesh.

    Bangladesh Prime Minister Sheikh Hasina was inundated by official meetings through the day but her family had other social obligations.

    The PM's son Sajeeb Wazed Joy and daughter Saima Wazed Hossain Putul, accompanied by their aunt Sheikh Rehana and her children, called on the Gandhi family to revive an old connection that had become rusty with disuse.

    Sheikha Hasina came bearing mouth-watering gifts — Bangladesh's famous hilsa fish from the Padma river, which they swear is tastier than the Indian hilsa from the Ganga.

    In return, Sheikh Hasina will probably be gifted a little bit of West Bengal when railway minister Mamata Banerjee gifts her a 'Dhonekhali' saree, a speciality of the state and a variety she personally prefers, along with some of Kolkata's 'notun gurer shondesh'.The credit will aid infrastructural development in that country, including building railway bridges, supply of locomotives and assistance in dredging.

    Sheikh Hasina assured that no anti-India activity would be allowed to be carried out from the country. Sources said security was one of the most important issues on which the two sides agreed to actively cooperate.

    During his meeting with Sheikh Hasina, Singh said her visit had opened a new chapter in India-Bangladesh ties leading to "complete unity of heart and mind".

    In another goodwill gesture, India said it would stop work on the Tipaimukh dam project which had caused resentment in Bangladesh.

    Bangladesh Prime Minister Sheikh Hasina was inundated by official meetings through the day but her family had other social obligations.

    The PM's son Sajeeb Wazed Joy and daughter Saima Wazed Hossain Putul, accompanied by their aunt Sheikh Rehana and her children, called on the Gandhi family to revive an old connection that had become rusty with disuse.

    Sheikha Hasina came bearing mouth-watering gifts — Bangladesh's famous hilsa fish from the Padma river, which they swear is tastier than the Indian hilsa from the Ganga.

    In return, Sheikh Hasina will probably be gifted a little bit of West Bengal when railway minister Mamata Banerjee gifts her a 'Dhonekhali' saree, a speciality of the state and a variety she personally prefers, along with some of Kolkata's 'notun gurer shondesh'.

    India to give Bangladesh $1bn line of credit - Times Of India
     
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    India sets up $15 billion global aid agency :india:
    July 2, 2012

    Not long after grumblers in the UK asked their own government why it was giving money to India, if it was giving its own money away, India unveiled a global aid agency on the order of the UK's Department for International Development (DFID) or the US Agency for International Development (USAID).

    Called the Development Partnership Administration (DPA), the agency is designed to streamline and make more transparent India's growing foreign aid program, which has expanded from almost nothing a decade ago to a sizable outlay targeting more than 60 developing countries.

    The DPA will have around $15 billion to spend over the next five years, India's Sunday Guardian newspaper reported. It will be headed by Ministry of External Affairs' (MEA) additional secretary P.S. Raghavan and will bring under one umbrella all agencies involved with foreign aid and development projects within the foreign ministry, the paper said.

    "We do not like to call ourselves a donor," the Sunday Guardian quoted Syed Akbaruddin, joint secretary with the Ministry of External Affairs, as saying. "We call it development partnership because it is in the framework of sharing development experiences. It follows a model different from that followed in the conventional North-South economic cooperation patterns, hence the designation of Development Partnership Administration, it is administering our development partnership projects." :tup: :india:

    So far, India's foreign aid program has made major donations to Sri Lanka, Myanmar and Afghanistan, signaling that along with helping its neighbors New Delhi (like Washington and Beijing) views economic aid as an important foreign policy tool.

    Too bad the bean counters still complain that there's not enough in the coffers to feed everybody in India.

    India sets up $15 billion global aid agency | GlobalPost
     
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    India doles out Rs 26bn aid grant to Bhutan
    17 March 2012

    At the 2012 budget presentation in the Indian parliament, the Indian finance minister, Pranab Mukherjee yesterday said Rs 2,638 crore or about Nu 26bn has been kept aside as aid for Bhutan.

    Last year, the Indian government provided Nu 20bn in aid to Bhutan.

    Amidst an ongoing rupee crisis, this Nu 26bn which will come to the country as development aid is expected to ease rupee shortage in the country. The government is expecting the budget to be released by the Indian government during the month of April this year.

    Finance minister Lyonpo Wangdi Norbu during a press conference earlier said that he is expecting the money to be released after the Indian budget presentation is over.

    Business Bhutan also learnt that the finance secretary Lam Dorji and acting foreign minister Lyonpo Khandu Wangchuk at the sidelines of Mangdechhu hydropower project meeting were supposed to meet the Indian finance minister to discuss about the release of the budget and also initiate talks to increase the standby credit line from Rs 3bn to Rs 6bn.

    While the Royal Monetary Authority is desperately trying to rein in rupee shortage in the country by means of monetory tools, the government apart from using the fiscal tool is heavily depending on aid from India.

    So far, the Indian government has committed a total of Rs 34bn, of which Rs 7bn has already been allocated for small development programs.

    Earlier the finance minister explained that since the money committed was not been disbursed on time, the government incurred expenditure of Nu 1.5bn for the small development program which further fuelled rupee depletion.

    The Indian government will soon replace the amount. “If this money comes, we will be better off,â€￾ said Lyonpo Wangdi Norbu.

    The prime minister and the finance minister were not available for comments.

    An economist Business Bhutan talked to however asked, “For how long Bhutan will depend on aids from India which will only be a short term measure to deal with the current situation of rupee shortage?â€￾

    He said Bhutan needs to look beyond India in terms of trade and investment with countries like Thailand, Bangladesh and Nepal.

    The government is also expecting inflow of rupee once the grant and loans from India for hydropower projects like Sunkosh, Mangdechhu and four other joint ventures embarks. :india:

    Business Bhutan - Nations only Financial Newspaper
     
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    India to Provide 600 University Scholarships to Afghans

    India will offer 600 scholarships to Afghan students over the next five years in the fields of agriculture, civil service and forestry, the UN Development Programme (UNDP) said Sunday.

    An agreement between Afghanistan's Ministry of Agriculture, Irrigation and Livestock and India's government will see the 600 scholarships granted to Afghans undertaking Bachelors, Masters and Ph.D. courses in Indian Universities.

    The scholarships are supported by the UNDP under its assistance to Afghanistan in the National Institution Building Project (NIBP), according to a statement on the UNDP website.

    In other news, the NIBP is helping Afghanistan's Ministry of Labor and Social Affairs, Martyrs and Disabled the put together a national policy on child labour, the statement added.

    According to the UNDP website, the main focus of the NIBP is to build the professional capacity of leading Afghan government ministries and agencies at both the national and sub-national level.

    An NIBP board meeting to be held in Kabul on Monday is expected to be attended by senior government officials and representatives from the embassies of India, Japan, Denmark, Sweden, Poland, Kazakhstan, Italy and Australia.

    India to Provide 600 University Scholarships to Afghans
     
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    India to build Afghanistan’s parliament complex

    New Delhi, Nov 6 (IANS) The cabinet Thursday okayed construction of Afghanistan’s parliament building and the Indian chancery complex in Kabul.The government approved these projects at a revised cost of Rs.950 crore (Rs.9.5 billion/approximately $200 million).

    “The construction of the parliament building will be a visible symbol of India’s contribution for strengthening and rebuilding democracy in Afghanistan,” Prithviraj Chavan, minister of state in the Prime Minister’s Office (PMO), told reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

    “The construction of the chancery complex will provide a secure and functional base for our diplomatic functions in Kabul,” he said.

    The Indian mission in Kabul was bombed July 7, killing 54 people including two diplomats and two security personnel.

    India has placed $1.2 billion for reconstruction activities in Afghanistan.

    India to build Afghanistan’s parliament complex - Thaindian News
     
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    India gives $5-billion aid to Africa :india:

    India loosened its pursestring to woo Africa on Tuesday with Prime Minister Manmohan Singh announcing a multi-billion dollar in aid while inaugurating the second India-Africa Forum Summit in the capital of Ethiopia.

    Amid thunderous applause from the leaders and representatives of 15 African countries at the African Union headquarters in Addis Ababa, Singh announced a line of credit worth $5 billion "to help achieve the development goals of Africa". "There is a new economic growth story emerging from Africa. Africa possesses all the prerequisites to become a major growth pole of the worldâ€Â¦ India will work with Africa to realise its vast potentialâ€Â¦ It is in this spirit that I wish to outline some initiatives for the consideration of our African partners," Singh said on the eve of Africa Day.

    The $5.4 billion aid offered at the first Summit in Delhi in 2008 focused on regional integration through infrastructure development. Singh said, "I believe we have reason to be satisfied with what we have achieved since 2008. But our people expect much more and we have to work hard to deliver on these expectations.

    He also offered an additional $700 million to establish new institutions and training programmes in consultation with the African Union and its institutions. There was also support for the development of a new Ethiopia-Djibouti Railway line to the tune of $300 million.

    Unlike China capacity building has been India's focus in Africa over decades. It may be recalled that half of the Cabinet in an erstwhile Ethiopian government had studied or were trained in India. The area of capacity building has been New Delhi's strength and Singh once again did not disappoint his African counterparts.

    He announced creation of several new institutions at the Pan African level across various sectors - food, textile, weather forecasting, life and earth sciences and agriculture and rural development.

    African students are a common sight in Indian cities be it Bangalore, Pune, Mumbai, Delhi or Kolkata. To encourage them further government announced that an India-Africa virtual university will be set up to meet the demands among Africans for higher studies in Indian institutions.

    Towards this end 10,000 new scholarships will be offered under the proposed university.

    The PM also announced an increase by 900 training slots for the Africans under the Indian Technical and Economic Cooperation (ITEC). Therefore a total of 2500 training positions under ITEC will be offered for the next three years to the Africans and total scholarships offered during the same period will amount to 22,000.

    At the bilateral level, it was also proposed to establish institutes for English language training, information technology, entrepreneurship development and vocational training across African countries. And as part of new initiatives in the social and economic sectors India will also establish rural technology parks, food testing laboratories, food processing business incubation centres and centres on geo- informatics applications and rural development.

    In order to bring together business leaders from both sides and deepen trade ties, an India- Africa business council will be set up. :tup:

    A strong votary of peace building in Africa for decades that would lead to prosperity, India made yet another key announcement.

    Singh said, "I am happy to announce that India will contribute $2 million for the African Union Mission in Somalia." Stability in the Horn of Africa, as Somalia is known, is also key in addressing the menace of piracy, of which India has been a victim.
    Air connectivity has been a bottleneck between Indian cities and African nations.

    This has not helped in increasing peopleto- people contacts. Acknowledging this, PM said, "One of the biggest gaps in our interaction is that of insufficient air connectivityâ€Â¦ To begin with, India would be happy to increase the access of African airlines to Indian cities in a significant manner over the next three years."

    India on its part sought Africa's support for its bid for a permanent seat in the UN Security Council.

    "The current international economic and political situation is far from favourable, particularly for developing countries... The world faces new challenges in assuring food and energy security. Global institutions of governance are outmoded and under stress," Singh said.

    African nations had overwhelmingly voted for India in the election for non permanent seat at the UN. The continent also hopes to get two slots in the expanded Security Council. :tup: :india:

    India gives $5-billion aid to Africa : Rest of the World, News - India Today
     
    Last edited: Jan 13, 2013
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  12. sunny_10

    sunny_10 BANNED BANNED

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    India gifts embassy to Palestine, pledge $20 million aid

    New Delhi, Oct 7 (IANS) In a gesture reaffirming unwavering commitment to the Palestinian cause, India Tuesday announced an assistance of $20 million to the Palestinian National Authority (PNA) and gifted it a new embassy that is being built in the heart of the capital’s diplomatic enclave. Prime Minister Manmohan Singh held talks with PNA President Mahmoud Abbas, who is on a four-day state visit to India, on a wide range of subjects, including the peace process in West Asia.

    The two leaders laid the foundation stone of the chancery-cum-residence complex of the embassy of Palestine and formally dedicated the building “to the people of Palestine as a gift from the people of India”.

    “I reiterated to President Abbas India’s consistent support to a negotiated solution to the Palestine issue,” Manmohan Singh said at a function organized at the ground of the the proposed chancery-cum-residence complex at Chanakyapuri area.

    “India believes that the solution should be based on the relevant United Nations resolution, the Arab Peace Plan and the chartered roadmap resulting in a sovereign, independent, viable and united state of Palestine living in a secure border, side by side with Israel,” stressed Manmohan Singh.

    He also announced a grant of $10 million as budgetary support to the PNA to help meet its immediate requirements and another $10 million dollars as assistance for development projects. :tup:

    An agreement on the construction of a school in the name of India’s first prime minister Jawaharlal Nehru in Abu Dees in Palestine was also signed between the two sides.

    Thanking India for its consistent support to the Palestinian cause, Abbas said: “I would like to be very frank and say that India has given help and assistance to Palestine without asking for any favour in return.

    “India is playing an important role in all fields (concerning Palestine), including the peace process… We appreciate India’s support,” Abbas said.

    A Palestinian spokesman said: “The two leaders discussed a range of issues including chalking a roadmap for future cooperation and developmental works in Palestine.”

    Abbas’ visit comes at a time when the West Asia peace process is under strain even as India is increasingly seen as a credible interlocutor by Palestine and Israel due to its excellent relations with both sides.

    However, a cautious India, which was among the first countries to recognize the declaration of the state of Palestine in 1988, has refrained from getting directly involved so far.

    With some political opponents accusing the Manmohan Singh government of betraying the Palestinian cause, New Delhi has designated Abbas’ trip as “state visit” to underline its special ties with the Palestinian people.

    PNA Foreign Minister Riyad Al-Maliki and other senior officials are accompanying Abbas on this state visit to India.

    Abbas also met President Pratibha Patil, Vice-President Hamid Ansari, United Progressive Alliance (UPA) chairperson Sonia Gandhi and Leader of Opposition L.K. Advani.

    The visit is seen as a balancing exercise by New Delhi in view of its rapid expansion of diplomatic, military and trade ties with Tel Aviv since it recognized Israel in 1992. Israel is now the second largest arms supplier to India after Russia.

    India gifts embassy to Palestine, pledge $20 million aid - Thaindian News
     
  13. sunny_10

    sunny_10 BANNED BANNED

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    and here we may compare India with Britain, which offers only around $300mill aid per year, which is till 2015 only, not more, but they want multi billions deals from India in return, and their own news papers report like as below :tsk: :facepalm:

     
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  14. sunny_10

    sunny_10 BANNED BANNED

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    We have new GDP Per Capita on PPP calculation for India considering the year 2012 also, is as below:

    now poverty of India is because of its over population. Most of the problems of India is because of its Over Population and India has to reduce its population only. otherwise India has around 350mil Upper Middle Class, more than total population in 1947, whose per capita income on PPP is similar to the Very High HDI countries like Argentina, Poland, Saudi Arabia etc. one day I calculated as below:-

    first, we find GDP on PPP of India was $4.45tn in 2011 but its still manipulated by the US/UK since 2007. as, till 2006, we had a different way of measuring GDP on PPP which used to include estimated undocumented part of GDP also. and I remember, this way GDP of high population 'developing' countries was around 50% to 80% higher, and for the middle order countries like Brazil/Turkey it was around 10% higher. and for the developed nations, the difference was hardly around 1% to 3% by that "Old Method" which was in application till 2006. like as below:

    means, GDP of India on PPP was already $5.16tn in 2006. again we have India's growth rate since 2007 as below:

    India GDP Annual Growth Rate

    here we find, "Average Growth Rate" of India from first quarter of 2007 till the December quarter 2012, stood at around 7.7%, on 'annual' basis. hence considering GDP on PPP of India at $5.16tn in 2006 by Old Method, we may calculate its value by 2012, after 6 years since early 2007, as below:

    GDP on PPP of India by end 2012 = 5.16*1.077*1.077*1.077*1.077*1.077*1.077= $8.053tn

    but we would also get to know that PPP value consider value of goods and serivces in US$ term, means we would include the factor of inflation of United States also. and even if we consider average 2.0% inflation of US for those six year in between early 2007 to 2012, with considering an overall factor of just 1.10 this way, then GDP on PPP of India comes around = 8.053* 1.1= $8.86tn by 2012. and it still hasn't included 'Value Added' effects also........

    again, we know that share of agriculture was around 17% in India's GDP in 2012. therefore, we find share of agriculture in indian economy, 0.17 * 8.86= $1.506 trillions, on which 50% population of india is dependent. means around 600mil people based on agriculture in india have per capita income around = $2,500 on PPP by 2012, which is itself similar to the lower middle order countries.

    this way, 8.858 - 1.50 = $7.36tn is left for rest of 600mil people based in industry and service in India, with per capita income of around $12,366 on PPP which is higher than Brazil..........

    again, we have news that 25% of the population of cities are either in slum or in bit better condition only. so we would consider per capita income of 300mil living in cities in low condition at hardly $3,000 which takes a share of $900bil from its GDP. hence we are then left with around 7.36 - 0.90 = $6.46tn, around, for rest of 300 mil people living in cities, the so called Middle Class of India with per capita income around $21,533 on PPP this way.

    but it is estimated that out of total 600mil people based in agriculture sector, it also has around 50mil Lower Middle Class with Per Capita Income around $12,000 on PPP. (as we know that agriculture has higher share of 'undocumented' part, with that, Agriculture also has higher share of non-taxable business of India.) so we find total middle class of India around 350mil with per capita income around $20,000 on PPP which is similar to Very High HDI countries like Argentina, Poland, Saudi Arabia etc, which is more than total population of India at the time of freedom in 1947 :coffee:

     
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  15. sunny_10

    sunny_10 BANNED BANNED

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    Amid slowdown, India ramps up aid for neighbours
    Mar 18, 2012

    NEW DELHI: A difficult economic situation notwithstanding, India will be stepping up its assistance programme to its neighbouring countries in the coming fiscal.

    The biggest chunk of India's assistance programme is reserved for Afghanistan, Myanmar and Bhutan that are provided for in the 12th five-year Plan. But under the non-plan head, Bhutan takes the largest chunk with a combined loan-grant amount of Rs 1,500 crore. Bhutan has traditionally been the largest recipient of Indian aid, with massive hydro-electric projects being covered in the Plan expenditure. :tup:

    Afghanistan and Myanmar are big recipients, both strategically vital for India's security and economic interests. India has invested heavily in infrastructure projects in Afghanistan, including roads, parliament buildings and capacity building for the Afghans in various fields. India also runs the biggest children's hospital in Kabul. :tup:

    However, recently, India won the Hajigak iron ore mines that will necessitate building several roads connecting the mines to border points. A new component of India's aid package to Afghanistan is in the security sector. As a result of the strategic partnership agreement with Afghanistan last year, India is committed to training and equipping Afghan national security forces. This will include training programmes, to be mainly held in India.

    New Delhi is building a multi-modal transport system in Myanmar that could also serve to improve trade with the country that India now regards as the gateway to south-east Asia. :cheers:

    Other countries that will continue to receive Indian aid this fiscal is Sri Lanka, where India has invested in rehabilitation and rebuilding programmes in the north, railway lines and oil terminals as well as building houses for the internally displaced persons from the Tamil regions. Bangladesh also takes a sizeable chunk of Rs 250 crore after the PM announced a $1-billion credit line for the country in 2010. :tsk:

    Bafflingly, the government spends a minuscule amount for "energy security" in the MEA, but it's so small that it's unclear what this would be used for. Equally strangely, Mongolia gets Rs 2 crore this year from India, but the reason for that remains unclear.

    Amid slowdown, India ramps up aid for neighbours - Times Of India
     
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