Sixteen countries including Angola, Kosovo, Bosnia and Vietnam are to lose British aid, Andrew Mitchell, the International Development Secretary, will announce tomorrow.
The Government wants to direct up to 30 per cent of its overseas aid resources to "fragile" war-torn states, such as Afghanistan and Somalia, which pose a security threat to the UK. The World Bank and United Nations' funding is also expected to be cut as part of the review.
But ministers have been criticised for freezing only the £280 million that will be given to India over the next four years, despite it not being in conflict and having its own space programme and aid budget. Mr Mitchell said that while it was advanced in some areas, India was a "development paradox" with about 450 million living on less than 50p a day.
He told the BBC's Politics Show: "Our development programme in India is part of a wide partnership. In India there are more poor people in three states than there are in the whole of sub-Saharan Africa."