The development policy of the EU for the developing countries isone of the major componentsof its external relations, which it implements through its aid programmes.1The notion of helping the newly independent countries to embark on the path of development was initiated by the Treaty of Rome on a small scale by the creation of the European Development Fund (EDF) for the Overseas Countries and Territories (OCTs).2It later evolved through subsequent treaties and conventions. In Part IV of the Rome Treaty, ‘associated status’ was given to OCTs which had colonial links with the EC member states –Belgium, France, Italy and, the Netherlands.3Formally, the foundation of the European Community’s development policy was established through Title III of TFEU, which aims to eradicate poverty in poor countries by assisting them in overcoming problems relating to education, health, sustainable agriculture and energy production, alongwith job creation and entrepreneurship. As mentioned earlier, this policy grew gradually and in the beginning only the associated countries were included, but later it was expanded to include other poor and least developed countries of the world.4The European Consensus on Development (2005) and the Lisbon treaty (2009) are the latest paradigms by virtue of which the EU’s development policy is being implemented. In this regard, the Commission, the European Parliament and the Council are jointly involved. The declaration on Policy Coherence for Development, the Millennium Development Goals, and the Agenda for Change are important dimensions of the EU’s development policy in the developing countries.