India 'graduates' out of US military aid

The United States has said India was "graduated" out of its military assistance programmes a couple of years ago and New Delhi is being "graduated" out of economic assistance as well "with the understanding and agreement of the Indians."

"We are graduating India. That is with the understanding and agreement of the Indians," a senior Administration official revealed while briefing the media on President Bush's fiscal 2006 budget (beginning October 1, 2005).

In the last year-and-half, he said, US officials have visited India six times, "and when we sit down and talk to them about assistance levels, it is not one of the major things they focus on."

He said that India was setting

a good example. When the tsunami struck India, "The Indians said, 'We don't need your assistance. We can do it ourselves on the economic side,' "  he said.

"We have already graduated them from the military assistance programmes a couple of years ago. That is a bilateral thing we are working with them. It is an understanding that they have," the official said.

The US International Assistance Budget for fiscal 2006 showed that India has allocated 14 million dollars to develop a more effective disaster response system, finance an education initiative among disadvantaged communities, implement water and power infrastructure reform activities and help reduce the fiscal deficits of Indian states.