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India

Country Program estimate 2009-10: $5.3 million
Total estimated ODA for 2009-10: $13.672 million

The Australian government is assisting India through partnerships with UN agencies and Development Banks. The Australian Centre for International Agricultural Research (ACIAR) also has a significant program of assistance to India.

A major multilateral HIV/AIDS program in North-East India commenced in late-2006.

Country overview

With some 1.1 billion people, diverse regions, and a vibrant democracy, India has made progress on a scale, size and pace that is unprecedented in its history. Economic growth rates have averaged 8 percent since 2006. The external position of the Indian economy has also improved as a result of the rapid growth of information technology service exports and high remittances contributing to current account surpluses. India could be the world's fourth largest economy within 20 years given similar sustained growth. The impact of the global recession on the Indian economy will, however, critically affect its growth trajectory .

India has made progress against a range of social indicators. However the country's achievements have created new challenges. There are a number of emerging environment and socio-economic issues such as climate change, regional security, HIV and pandemics that could have an impact on India's development outcomes.

Development challenges:

Economic growth has not been inclusive. Substantial and persistent disparities of opportunity in education, health and economic prospects exist and reflect geographical, ethnic and gender differences. There is a significant gulf emerging between richer and poorer states in the country. Infrastructure has been unable to keep pace with the country's needs. Access to safe water and adequate sanitation is emerging as a critical challenge, as is the threat of HIV/AIDS.

The slow growth in agriculture is a concern as approximately two thirds of India's population depends on agriculture and rural employment. Access to markets by farmers is hampered by poor infrastructure, and regulatory and policy constraints.

India recognizes that climate change predictions pose many risks from increased exposure to flooding, drought, cyclones to sea level rise and ocean acidification. India is therefore committed to engage constructively and productively with the international community in addressing environmental issues.

Aid Activities in India

Australia will continue to have a modest but growing aid program to India. It will be strategically focused on a small number of key sectors where Australia has relevant expertise. The activities include:

HIV/AIDS Program for North East India

Contribution: $10 million ($2.1m for 2009-10)
Duration: 2006 - 2011
Implementing Organisation: UNAIDS

The project aims to reduce the risk and impact of HIV/AIDS in the states of Nagaland, Mizoram, Meghalaya and Manipur in North East India.

Climate Change initiatives

Australian assistance in Climate Change will be mainly technical cooperation in renewable energy, energy efficiency and water resource management with key institutes such as The Energy Research Institute (TERI) in India.

Contribution: $1 million
Duration: 2009 - 2010
Implementing Organisation: TERI

Public Sector Linkages Program (PSLP)

Activities supporting effective government to government interaction through PSLP in climate change, water and resource management, agriculture/ dryland farming, economic policy, public sector effectiveness, and basic service delivery in education and health.

Contribution: $10 million ($2.3 million for 2009-10)
Duration: 2008 - 2013
Implementing Organisation: Australian and Indian Public Institutions

Regional Programs (which are implemented in India and other countries in the South Asia region)

Support for improved water and sanitation, and governance in infrastructure
Contribution: $1.177 million for 2009-10Implementing Organisation: World Bank, IMF and ADB

Useful websites

June 2009

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