USAID allocated USD 750 million for seven projects in India in FY24, focusing on sectors like agriculture, health, and renewable energy, with no funding for voter turnout.
Amid growing political controversy over the alleged role of the United States Agency for International Development (USAID) in influencing Indian elections, the latest annual report from the Ministry of Finance has revealed that USAID funded seven significant projects worth USD 750 million in the fiscal year 2023-24.
According to the Finance Ministry’s annual report, “Currently, seven projects worth a total budget of USD 750 million (approximately INR 6,000 crore) are being implemented by USAID in collaboration with the Government of India.” These projects, which span a range of sectors, were part of a continued partnership between India and the U.S., dating back to 1951. In the 2023-24 fiscal year alone, USAID allocated a total of USD 97 million (about INR 825 crore) for these initiatives.
Breakdown of funded projects
The Department of Economic Affairs, which handles bilateral funding arrangements, also shared detailed information about the projects funded by USAID in 2023-24. While there was no funding allocated for voter turnout-related projects, the focus was on critical sectors such as agriculture and food security, water, sanitation, and hygiene (WASH), renewable energy, disaster management, and health. Additionally, funds were earmarked for programs related to sustainable forests, climate adaptation, and energy efficiency technology commercialization.
USAID, which has provided over USD 17 billion in assistance to India since its inception, has been involved in more than 555 projects across various sectors, contributing significantly to India’s development over the decades.
Controversy surrounding alleged election influence
The political debate surrounding USAID’s involvement in India intensified earlier this month after Elon Musk’s company, DOGE (Department of Government Efficiency), claimed it had cancelled a USD 21 million grant aimed at increasing voter turnout in India. This claim was further amplified by former U.S. President Donald Trump, who repeatedly alleged that USAID under the Biden administration allocated funding to India for the same purpose.
External Affairs Minister S. Jaishankar responded to the allegations, calling the claims “concerning” and emphasising that the government was looking into the matter. He reassured that USAID’s presence in India was welcomed “in good faith,” with the agency initially being permitted to carry out activities for developmental purposes. Jaishankar expressed concerns over suggestions that some activities were not conducted in good faith, especially in light of the recent allegations.
Political backlash from opposition
The controversy also prompted a strong response from the opposition, particularly the Congress party. Congress leaders accused the ruling Bharatiya Janata Party (BJP) of spreading “fake news” from the United States and taking part in “anti-national work.” Congress General Secretary Jairam Ramesh criticized the BJP for jumping to conclusions based on unverified information, adding that the USD 21 million grant was intended for voter turnout projects in Bangladesh, not India. Ramesh also aimed at Prime Minister Narendra Modi and Jaishankar, questioning their silence in the face of repeated allegations from figures like Trump and Musk.
Ramesh remarked, “The BJP is a procession of liars and illiterates. The USD 21 million grant was never intended for voter turnout in India but for Bangladesh. The BJP must explain why it is amplifying such baseless claims.”
As the political debate continues, the issue highlights the challenges surrounding foreign aid and its potential influence on domestic political processes. Both the Indian government and USAID will likely face further scrutiny as the situation unfolds, and the government may need to address the broader implications of foreign funding on Indian elections.
This ongoing controversy underscores the complexity of international aid, particularly when it intersects with sensitive issues like national elections. With both political parties in India voicing strong opinions, the government’s response will be closely watched as it works to resolve the situation and maintain transparency in its dealings with foreign agencies.
(Inputs from PTI)
