Decision to maintain aid of £280m a year likely to infuriate some MPs, who believe UK should not give aid to a nation that spends £20bn a year on defence.

The government has defended its decision to give £1bn in aid to India, despite the rapidly increasing wealth of the emerging economic giant.

 A review of UK aid will maintain aid donations to India of £280m a year until 2015, while withdrawing assistance from countries such as Vietnam, Cambodia, Serbia and Moldova, the international development secretary, Andrew Mitchell, revealed.

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