Rift emerges between India and Britain over economic aid row

Europe Sun (ANI) Monday 6th February, 2012

Leaders of various political parties have condemned the British government's decision to impose conditional economic aid to India.

Reacting over the issue, senior politburo member of the Communist Party of India-Marxist (CPI-M), Sitaram Yechury said that the economic aid does not benefit the country if certain conditions are attached to it.

"Well, Britain is reacting in typical manner in which the conservative Tory (party) led government would react. They are saying that if you are not meeting our interests, why should we give you aid. So be it. I mean if the aid is only tied and conditional the aid is not going to be helpful to India," said Yechury.

It was reported in the British daily that the government is unlikely to extend any kind of economic assistance after the Finance Minister, Pranab Mukherjee had said, during a session of the Rajya Sabha, that the country does not need 'peanuts'.

The report also said that the pressure was exerted on the British government after India preferred France to Britain to supply it with 126 fighter jets.

Meanwhile, Corporate Affairs Minister, Moodbidri Veerappa Moily came up in defence of India over fighter jet deal saying no country has the right to curb their business with them.

"You must know that ours is a liberated country. We are no more connected with UK. You know, the business could not work on monopolies. Business can be worked in a competitive manner. Whatever the best quality and whatever the best prices available, we do business. That way one country cannot dictate and say that you do business only with me not anybody else.," said Moily.

At present Britain gives aid worth 280 million pounds to India. As per the report of a weekly magazine, India Today, the economic aid provided by Britain to India, since 2005 is used in poverty eradication programmes in the country. (ANI)