The latest annual report from the Finance Ministry has revealed that the United States Agency for International Development (USAID) funded seven projects in India, with a total budget of approximately $750 million (roughly, Rs 6,500 crore) during the financial year 2023-24.
According to the report, an obligation of $97 million (about Rs 825 crore) was made by USAID under these projects for the year. The Department of Economic Affairs, which handles bilateral funding arrangements, has provided details of these projects, covering sectors like agriculture, food security, water, sanitation, renewable energy, disaster management, and health.
Interestingly, the report clarifies that no funding was allocated in 2023-24 for enhancing voter turnout in India. Instead, USAID focused on other areas, including sustainable forests, climate adaptation, and energy efficiency projects.
This comes after a political controversy erupted earlier this month when Elon Musk-led DOGE (Department of Government Efficiency) stated that it had cancelled a $21 million grant supposedly allocated to India for voter turnout initiatives. The claim gained traction after Donald Trump repeatedly alleged that USAID, under the Biden administration, had earmarked this amount for boosting voter participation in India.
External Affairs Minister S. Jaishankar called the information coming from the Trump administration “concerning” and said the government was looking into it. He emphasised that USAID was allowed to operate in India under the assumption of “good faith” and warned against any suggestions of activities that might be otherwise.
Meanwhile, the Congress party criticised the BJP for allegedly spreading “fake news from America.” Congress leader Jairam Ramesh claimed that the $21 million funding in question was actually meant for Bangladesh, not India. He accused the BJP of misleading the public and questioned the government’s silence over what he described as repeated “insults” from Trump and Musk.
USAID’s development assistance to India dates back to 1951, with more than $17 billion provided across 555 projects since then. The funding has covered a range of sectors, including health, infrastructure, and climate initiatives.
With political tensions flaring over foreign funding narratives, the debate over USAID’s role in India isn’t likely to settle anytime soon. Whether the government will take any formal action or issue further clarifications remains to be seen.
