The Forum of Free Enterprise is a non-political organization founded in 1956 by A.D Shroff and was established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled, “Reflections on Foreign Aid ” was published in 1970 and was authored by Prof. P.T.Bauer. The author highlighted the preconceived notion of the essentiality of foreign aid for the progress of underdeveloped countries not being able to save and invest for forming enough capital. He further focused on the augmentation of foreign aid as the resource of government. He emphasized the scope of improvement in this arena and lastly illustrated an example of aid received by India & Pakistan and therefore accentuated its ineffectiveness by being an instrument of political strategy.