The decision by the UK government to stop aid to India from 2015 is an "arbitrary termination" that needs a rethink as the country still faces key development challenges, says a new report.        

The Institute for Public Policy Research, a major centre-left think-tank in London, claims the announcement last year to end British aid to the country was "a tactic for winning votes at home rather than tackling poverty abroad".        

"The UK should not give aid to India for ever, but withdrawing now is premature given India's development challenges. DfID (Department for International Development) should instead focus on areas that are not benefiting from India's growth, and key issues like health, HIV and good governance in the poorest states," said Will Straw, the associate director of the IPPR and co-author of In aid of India? Defining a positive role for the UK released today.        

International development secretary Justine Greening had announced in November 2012 that the UK was to halt new commitments to India -- historically the biggest recipient of British aid.         Existing programmes will be wound down over the next three years, and after 2015 British support will be limited to "technical assistance".