After much sound and fury, UK to end India aid scheme in 2015
The decision will also delight Tory MPs who have attacked Prime Minister David Cameron's commitment to spend 0.7 per cent of national income on overseas aid. Greening said:
"After reviewing the programme and holding discussions with the government of India this week, we agreed that now is the time to move to a relationship focusing on skills-sharing rather than aid....
"It is of course critical that we fulfil all the commitments we have already made and that we continue with those short-term projects already under way which are an important part of the UK and government of India's development programme."
Officials said that during her India visit, Greening was told that the Indian government valued Britain's "technical assistance" far more than money.
Greening said: "Having visited India I have seen first hand the tremendous progress being made."
The UK's overall financial contribution to India since the Coalition took office in the UK is expected to total more than one billion pounds.
After 2015, the contribution of Britain's technical expertise to development programmes in India will cost an estimated one tenth of the current total aid budget to the country.
As existing grants are phased out, the government expects to save around 200 million pounds over the next three years.
Greening's announcement is likely to be seen as a sign that Britain intends to cut aid to wealthier nations, including those that are preparing to enter the EU, and focus instead on the poorest countries.
She told the Conservative conference last month: