Washington, July 24
The US is set to cut aid to India by 35 per cent in 2008 after the South Asian nation was categorised as a “transforming” country with one of the best-performing economies in the world in a sweeping overhaul of the US foreign assistance programme.

India’s aid was slashed to $ 81 million after it was categorised as a “transforming” country instead of a “developing” one under a plan developed by Randall L. Tobias, a corporate veteran, chosen by secretary of state Condoleezza Rice to manage foreign assistance, the Washington Post said.

“India is now taking a different place on the global stage, in terms of diplomacy, politics and economy,” US State Department spokesperson Sean McCormack was quoted as saying by The Post. “Aid programmes had not caught up with these evolving realities” he added.

The Washington Post has pointed out that the bulk of the $ 23 billion in annual US foreign aid goes to a handful of key countries, leaving about 120 nations to battle over $ 3 billion of the pie.

India is one of the big losers in Rice’s foreign aid revolution. All US aid to assist India in education, women’s rights, democracy and sanitation will be terminated under the new overhaul of US foreign assistance programme.

While defending the foreign assistance package for 2008 in February, Tobias had labelled India as a “Transforming” country in contrast with countries like Pakistan and Bangladesh, which were labelled “developing” countries.