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International Development Secretary Justine Greening said the UK ending financial aid for India in 2015 will save £200 million.
Britain will still pay India around £30 million after 2015 but this will be for "technical assistance".
Britain will continue giving India £280 million a year in financial aid until 2015, the Department for International Development has told ITV News.
After the aid grants have been phased out, Britain will provide "technical assistance" to the country, which will cost around £30 million a year.
The Department for International Development has announced the end of a lease on their London headquarters on the same day it said there would be no new financial aid to India after 2015.
Britain will no longer give India financial aid from 2015 but will in the future support areas like trade and investment and health.
British aid to India will come to an end in 2015, International Development Secretary Justine Greening has announced.
Between now and 2015, financial support will be reduced by about £200 million a year.
However, The Sun's Political Editor Tom Newton tweeted: