UK will continue to provide India 1 bn pound aid

The UK will continue to provide India over 1 billion pound until 2015 despite political pressure to reduce aid to the booming Asian giant, amid deep cuts in public spending at home.

British aid to India would remain at 280 million pound a year until 2015, but will shift to more investment in private enterprise, UK's international development secretary Andrew Mitchell was quoted as saying by the Financial Times.

Mitchell's comment, which came a day before formal announcement, is likely to infuriate some MPs who see no justification for the aid, while slashing defence or anti-poverty spending at home.

There were demands to cut aid to India due to the country's booming economic growth and reports of corruption in the use of British funds. A review of UK's overseas aid policy was launched after the David Cameron government took office.