SDF was established in 2008 by the SAARC countries to improve the livelihood of the
people and to accelerate economic growth, social progress and poverty alleviation in the region.
The Fund is implementing many SAARC projects and programmes. Project funding in SDF is to
be taken up under three windows (Social, Economic and Infrastructure). Of the three windows of
SDF, economic and infrastructure windows are being operationalized.
Department of Economic Affairs also deals with Bilateral Development Assistance from G-
8 countries, namely USA, UK, Japan, Germany, Italy, Canada and Russian Federation as well as
the European Union. The Division also deals with the work relating to extension of Lines of
Credit to developing countries. It is also the focal point for administering short term foreign
training courses of the duration upto four weeks offered by various international agencies/
Bilateral Official Development Assistance
India has been accepting external assistance from bilateral partners in the form of loans,
grants and technical assistance for development of infrastructure, social sector and for
enhancement of knowledge/ skills of Indian nationals at both Centre and state level. In terms of
the guidelines issued in 2005, bilateral development assistance can be accepted from all G-8
countries, namely USA, UK, Japan, Germany, France, Italy, Canada and the Russian Federation
as well as from European Commission. European Union Countries outside the G-8 can also
provide bilateral development assistance to India provided they commit a minimum annual
development assistance of US$ 25 million.
India-UK Bilateral Development Cooperation Programme
The United Kingdom (UK) has been providing development assistance to India since 1958.
Development assistance from UK is received mainly for achieving the SDG’s in the areas of
health, education, administrative reforms, slum development, etc. The assistance from the UK,
through its Department for International Development (DFID), flows to mutually agreed
government projects and programmes in the form of financial and technical assistance. Presently,
Odisha, Madhya Pradesh and Bihar are the three focus states of DFID.
India-European Union Development Cooperation
The European Union (EU) has been providing development assistance to India in the form
of Grants. The priority areas include environment, public health and education. EU implements
development cooperation programmes through Country Strategy Paper (CSP). The CSP is based
on EU objectives, on the policy agenda of the partner country and on an analysis of the country/
European Investment Bank
The European Investment Bank (the Banque Europeenne d’Investissement) (EIB) is the
European Union’s financing institution which was established in 1958 under the Treaty of Rome
(1957) to provide financing for capital investment. The members of the EIB are the Member
States of the European Union, who have all subscribed to the Bank’s capital. Outside the
European Union, EIB financing operations are conducted principally from the Bank’s own
resources but also, under mandate, from Union or Member States’ budgetary resources. Under