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India's aid dynamics: from recipient to donor?

Working Paper
Gareth Price, September 2004

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The NDA government oversaw a dramatic change in India's aid policy. This paper examines the reasons behind the new policy, and assesses the substance of the changes. The paper argues that the move was intended to enhance India's global position, but that the impact was less than the rhetoric implied. The key problem with the development package was the blurring of the distinction between the various new economic, political and developmental objectives. This was reinforced by a lack of transparency over what was actually being done and confusion over whether the India Development Initiative, in particular, was intended to develop India, as was suggested when the package was first announced, or as a means of channelling Indian assistance to other countries.