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".
More top news
The Duke and Duchess of Cambridge met young people who have battled mental health issues on Saturday.
Former Chancellor Lord Geoffrey Howe was Margaret Thatcher's longest-serving Cabinet minister, also taking on the role of Foreign Secretary.
Lord Geoffrey Howe is known by many for his resignation speech which was seen as the catalyst which destroyed Margaret Thatcher.