Foreign aid This is a form of financial assistance provided to an underdeveloped or developing economy from developed country to meet its

social and economic needs. It can be routed through monetary and non-monetary ways: Objective of Foreign aid:

Bilateral Funding Rule of 0.7 percent of national income as a source of foreign aid for every country Multilateral funding Economic Infrastructure Development ( Roads, Power Projects , Gika for uplifment of small scale industry) Social uplifment PMRY Sarv Shiksha Abhiyan Technology transfer Enviornmental Protection

About 90 percent of all aid received by India has been in the form of loans