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Sikh Philosophy Network » Blogs » Foreign Aid by India… » Entries for March 2012
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British Aid:Some myths.
After making a small and quick research as to why India rejected the aid from Britain, I could arrive at following conclusions that may not be correct as I am not an expert in this field. As per my understanding:

British Government is interested in selling its Typhoon Fighter planes to India with transaction cost is estimated to be more than 14 Billion US Dollars. Assuming 20 percent margin, that is very usual in such transactions-It may be as high as 40 to 400 Percent in small ticket transaction or even more, each plane would have given Brits a sum of 2.8 Billions .

British Aid is about 1Billion US Dollars and it would mean a pay back of a sum of 2.8 Billion dollars /per transaction from India.

Besides, Aid to India is always been considered on ethical grounds that I called as Gulit Conscious of Brits and it shall continue for quite sometime. Brits will always need India on their side to see that there is balance of power/interests amongst G-8 Countries in South East Asia. It is how the international politics is at the moment. Secondly, each EU country with side with India to act as deterrent to China that is likely to be the First Economy of the world in few decades.

Brits are forced to accept Indian superiority in terms of economic growth.

In the past the GOI mentioned that the British Typhoon was one fighters selected for basic/initial bidding. The second fighter was the French Dassault Rafale.

India selected in 2012 the Rafale of France over the British Typhoon. It was a biggest jolt to Brits

DFID shall continue to supply aid to India in anticipation of reaping massive profits in future.It shall now supply aid through Private Enterprises in India or NGOs.

India is the largest importers of sophisticated weaponry. Britishers also are in Queue to supply India with some.

Rejection of Aid is big blow on the Face of British establishment.

Note: Kindly use your discretion.
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