India

In 2010 India’s gross national income (GNI) reached US$1.6 trillion, ranking it the ninth largest economy in the world; at the same time, it is estimated that over 40% of India’s population of 1.2 billion lives on less than US$1.25 a day (World Bank). By 2020 India is expected to be the third largest economy in the world. However, despite rapid growth in its economy, India’s humanitarian aid contribution is low, peaking at US$36.5 million in 2010. In addition, it is still a recipient of official development assistance (ODA); it was the eighth largest recipient in 2009 (US$2.5 billion).

In recent years India has made efforts to reduce external aid. In 2003, it declared that only five countries (Japan, the United Kingdom, Germany, the United States and Russia) and the European Union (EU) could continue providing direct assistance. Projects funded by other bilateral donors could only be channelled through multilateral mechanisms. However, recently a number of OECD DAC donors have planned to reduce or cut aid to some BRICS countries. In 2011 the UK stated that it would end direct aid to 16 countries including India (BBC) and the EU announced in its Multiannual Financial Framework 2014–2020 that it will end bilateral aid to 17 upper middle-income countries, as well as two large lower-income countries whose GDP is larger than 1% of global GDP (India and Indonesia).

A recent study by GPPi looks at India’s role as a humanitarian donor highlighting challenges and opportunities.