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:
The government will cut foreign aid to India because its growing economy means it no longer needs handouts, according to reports.
Justine Greening, International Development Secretary, is expected to announce that the UK's aid commitment to India will change at the end of the current funding programme.
Indian finance minister Pranab Mukherjee said last year that India no longer wants or needs aid from Britain, describing the money as "a peanut in our total development expenditure".
- Providing trauma support for 28,000 children
- Assist UNICEF in reaching half a million refugees who have fled to neighbouring countries
- Train 125 frontline workers to work directly with vulnerable children
- Provide essential suppliesa further 2.5 million people as Syria's harsh winter approaches
- Shoes, winter clothing, blankets, heaters, cookers and emergency shelters to help the 1.2 million people who have been made homeless
The committee's report reveals that only 46% of EU aid for developing countries goes to low-income states: an "unacceptable" figure.
The rest, it says, goes to relatively better-off countries, many neighbouring the EU such as Turkey and Serbia.
"Turkey has consistently been in the top five recipients of European Commission aid (£182 million in 2010) as has Serbia (£178 million in 2010)" it says.
More than half of Europe's development aid budget is going to "middle-income" countries which should not qualify, MPs have warned.
A report by a House of Commons Committee challenges the UK Government, which provided £1.23 billion in aid via the EU in 2010, to demand tougher standards to ensure support goes to the neediest nations.