India to give $500m to Afghanistan

KABUL – Prime Minister Manmohan Singh announced an increase in aid to Afghanistan yesterday as he seeks to boost India’s economic…

KABUL – Prime Minister Manmohan Singh announced an increase in aid to Afghanistan yesterday as he seeks to boost India’s economic and strategic role in the country, a move that may escalate tensions with neighbour and rival Pakistan.

Mr Singh and President Hamid Karzai discussed the countries’ “strategic partnership” in Kabul, and India promised to raise its assistance to Afghanistan by $500 million in the coming years, the Indian leader said at a joint press conference.

India, which has given $1.5 billion to Afghanistan since 2001, says it aims to build a lasting presence there even as the United States and its Nato allies plan by 2014 to withdraw combat forces fighting Taliban insurgents. – (Bloomberg)