No more development aid to China, India from Germany

Berlin: China and India will no longer qualify for development aid from Germany, its new development minister Dirk Niebel was quoted as saying on Friday.

File Photo: Indian PM Manmohan Singh and Chancellor Angela Merkel at the G-8 summit, 9 July 2009

"Battling poverty is more important than ever for Germany. That means we should place our resources where they can help the most. Economic giants like China and India no longer fulfil these criteria," Niebel was quoted as saying by the Bild daily.

Germany is the world's second largest provider of development aid after the United States.

According to its most recent tabulations, it provided 67.5 million euros ($97.4 million) in aid to China in 2007 and 84 million euros to India in 2008.

China had received prior notice in 2008, when the previous development minister, Social Democrat Heidemarie Wieczorek-Zeul, had said that financial aid to China would be replaced with advice and what it called "economic partnership."

Niebel is now part of the cabinet of chancellor Angela Merkel, who has formed a new coalition government in Berlin following an election victory in September.