The funds, however, will still be diverted to aid projects abroad, rather than helping to ease the deficit or fund public services in the country.
According to the Daily Mail, aid to India, which has its own space programme, will be reviewed by International Development Secretary Justine Greening.
It could be halved before 2015, when it finally ends, after a review last year warned the country was too rich for handouts.
According to the paper, Greening is due to visit India this week for talks with politicians, and is believed to be poised to offer to replace ‘aid with trade’.
The UK would continue to provide India with expertise and technical assistance, it is understood, the paper said.
The report said that a spending review published by the Department for International Development last year concluded that aid to Russia, China and India would have to be cut.
Instead, it recommended that money should be diverted to poorer countries such as Kenya and Somalia, it added.