The increase in development assistance from the European Union will go towards funding education and healthcare

India will receive 470 million euros (Rs 2,585 crore, or US$ 617.44 million) in aid from the European Union (EU) over the next seven years for its education and healthcare programmes. This was announced by the EU Commissioner for External Relations Benita Ferrero-Waldner on February 16 during a five-day visit to the country.

Noting that the EU wanted to help India achieve its Millennium Development Goals, the EU commissioner said the European body would provide the funds during 2007-13. The amount represents payments of 67.1 million euros annually and would be an increase from the 45 million euros per year that the EU contributed to India from 2002 to 2006.

The newly-announced aid package, a substantial jump from the 225 euros the European body provided in 2002-06, comes just a week after the United States announced that it was slashing development aid to India.

Ferrero-Waldner said in New Delhi that India remained a developing nation with underdeveloped sectors, so the European Union would continue to support its development programmes. The commissioner stressed that a "big difference" needs to be made in education and healthcare.

In the past four years the Indian economy has grown at more than 8% annually, but, according to government statistics, a quarter of the country's 1.1 billion people still live in abject poverty, earning less than a dollar a day.

According to the National Family Health Survey, released recently, around 45.9% of Indian children are underweight -- a drop of just 0.8% over the late-1990s.

Source: www.euxtv.com, February 17, 2007
www.zeenews.com, February 17, 2007