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The United States Agency for International Development (USAID) funded seven projects in India with a total budget of approximately $750 million in the financial year 2023-24, according to the latest annual report of the Finance Ministry.
The report stated that USAID obligated $97 million (around Rs 825 crore) for these seven projects during the financial year. The Department of Economic Affairs, the nodal department under the Finance Ministry responsible for bilateral funding arrangements, shared details of these projects in the report.
USAID’s Focus Areas in India
According to the report, USAID funding in FY24 focused on key sectors such as agriculture and food security, water, sanitation, and hygiene (WASH), renewable energy, disaster management, and health. Additionally, funds were committed to sustainable forests and climate adaptation programs, as well as energy efficiency technology commercialization and innovation projects.
Contrary to recent claims, the report clarified that no USAID funding was allocated for enhancing voter turnout in India in the financial year 2023-24.
USAID’s Longstanding Partnership with India
The United States’ bilateral development assistance to India began in 1951 and has since been primarily administered through USAID. Over the decades, USAID has provided economic assistance exceeding $17 billion for more than 555 projects across various sectors in India.
Political Controversy Over Alleged USAID Funding for Voter Turnout
Earlier this month, a political controversy erupted after Elon Musk’s DOGE (Department of Government Efficiency) claimed that a $21 million grant was allocated to India to boost voter turnout. Former U.S. President Donald Trump had also repeatedly stated that USAID, under the previous Joe Biden administration, sanctioned $21 million for this purpose.
Responding to these claims, India’s External Affairs Minister S. Jaishankar called the information “concerning” and said the government is investigating the matter. He emphasized that USAID was allowed to operate in India “in good faith, to do good faith activities,” and that any suggestion of misconduct is being scrutinized.
Meanwhile, the opposition Congress party accused the ruling BJP of spreading “fake news” and engaging in “anti-national work” by leveraging unverified claims from the U.S. Congress general secretary in-charge Jairam Ramesh dismissed the allegations, stating that the $21 million in question was allocated in 2022 for Bangladesh, not India.
As the debate continues, the Finance Ministry’s report reaffirms that USAID’s recent funding in India was focused on development projects rather than electoral processes.
Sources By Agencies
