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It also emerged that in a leaked memo dating from 2010 India's then foreign minister Nirupama Rao suggested India should not accept any further aid from Britain's Department for International Development because of the 'negative publicity of Indian poverty promoted by DFID'.

They also risk raising fresh questions about the Coalition's controversial decision to pour billions more into foreign aid at a time of deep spending cuts at home.

Tory MP Philip Davies called for the Indian aid programme to be cancelled immediately.

Mr Davies said: 'India spends tens of billions on defence and hundreds of millions a year on a space programme – in those circumstances it would be unacceptable to give them aid even if they were begging us for it.'As for the 0.7 per cent target, it is a vanity project that is being pursued for no good reason at all.

I do not understand the Government's position on this and I don't think the British public do either.' The timing of the latest revelations is particularly embarrassing for ministers, coming in the wake of India's decision last week to reject the British-built Typhoon fighter jet as preferred candidate for a £13billion defence deal.

DFID claims that its programme saves 17,000 lives a year.

International development minister Alan Duncan said last week that scrapping the aid programme 'would mean that hundreds of thousands, if not millions, of people will die who otherwise could live'.

International Development Secretary Andrew Mitchell said: 'India itself has got 60 million children into school in recent years with their own money but more than 30 per cent of the world's poorest people live there. We will target aid at three of India's poorest states, rather than central Government.

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