6.1 Canada has been extending economic assistance to India since 1951. Canadian development aid is channellised through the Canadian International Development Agency (CIDA).
6.2 The Canadian assistance is extended entirely in the form of grant since 01 Apr 1986. Canada has also converted all un-disbursed loans for ongoing projects in India into grants effective from 05 May 1987.
6.3 The emphasis of Canadian Assistance is on softer aspects such as linkages development, human resource development, economic policy support (including business and private sector development), social equity and environment. The underlying principles of the new policy framework would be in collaboration and partnership. The three main objectives of CIDAs country policy programme for India are :
To promote economic and social policy reform in India.
To contribute to Indias capacity to promote environmentally sound development, and
To assist in building a stronger economic relationship between Indias and Canadas private sectors.
CIDA's programme now focus on projects of humanitarian nature which emphasise poverty reduction, gender equity, environment, human rights and child labour.
6.4 CIDA is assisting various on-going bilateral projects such as Rajasthan Agricultural Drainage Research Project, Tree Growers Cooperative Project, India Canada Environment Facility Project, Capacity Development of Revenue Administration Project and Energy Infrastructure Services Project. Canada is also funding various NGOs.
6.5 The details of assistance extended as loans and grants upto 1998-99 are given in Annexure I & II respectively.