In the early 1990s, large numbers of children in India remained out of school. International commitments to achieve education for all (EFA) globally meant that India was an important case for donors. India was pressed to accept aid for primary education, and agreed with some reluctance. Although subsequent donor involvement was substantial and influenced aspects of both policy implementation and management, it is shown that Indian education policy priorities remained self-determined. The Government of India--though falling short of securing universal education for its children--succeeded in using external resources and expertise in ways which suited its own purposes, whilst minimising external impact on policy development. The politics and economics of this process are discussed. (Contains 2 tables and 2 figures.)