USAID Allocated $750 Million for Seven Projects in India During FY24: Finance Ministry Report

New Delhi – The United States Agency for International Development (USAID) funded seven key projects in India, amounting to $750 million, during the financial year 2023-24, as per the latest report by the Finance Ministry.

According to the report, $97 million (approximately ₹825 crore) was disbursed for these projects during the year. The Department of Economic Affairs (DEA), which manages bilateral financial collaborations, confirmed that USAID’s funding was channeled into critical sectors such as agriculture, food security, renewable energy, water and sanitation (WASH), disaster management, and public health.

Breakdown of USAID’s Investments

The report clarified that no funds were allocated for voter-related programs in India. Instead, USAID’s support focused on:

• Climate Adaptation and Sustainable Forestry
• Energy Efficiency and Technological Innovation
• Water, Sanitation, and Hygiene (WASH) Initiatives
• Disaster Preparedness and Response
• Healthcare Infrastructure and Public Health Programs

The partnership between India and USAID dates back to 1951, with the U.S. providing over $17 billion in economic assistance for more than 555 projects across various sectors.

Political Controversy Over USAID’s Role

A political controversy erupted earlier this month after the Department of Government Efficiency (DOGE), led by Elon Musk, announced the cancellation of a $21 million USAID grant, which was allegedly intended to support voter participation in India.

The matter gained traction when U.S. President Donald Trump alleged that the previous Biden administration had allocated $21 million to influence voter turnout in India. However, India’s External Affairs Minister S. Jaishankar expressed concerns about these claims and stated that the government was looking into the details of the funding.

"USAID was allowed in India for developmental purposes under a framework of trust. If there are indications that some projects were not in good faith, it is essential to investigate," Jaishankar stated.

Congress Slams BJP Over Misinformation

The Congress party strongly criticized the BJP, accusing it of spreading false narratives regarding the USAID grant.

"BJP has been caught spreading misinformation. The so-called $21 million fund for voter turnout was actually a grant given in 2022 for Bangladesh, not India," said Congress leader Jairam Ramesh.

Congress further questioned Prime Minister Narendra Modi and External Affairs Minister Jaishankar on why the Indian government remained silent while Trump and Musk made repeated claims about U.S. funding in India.

Future Implications

With this controversy adding political tension, the Indian government is expected to closely scrutinize all future international funding programs. The issue may continue to generate debate in the lead-up to upcoming elections, impacting diplomatic relations and domestic policies.