New Delhi – The United States Agency for International Development (USAID) allocated $750 million to support seven major projects in India during the financial year 2023-24, according to a recent report by the Finance Ministry.
The report states that a total of $97 million (approximately ₹825 crore) was disbursed during the year. The Department of Economic Affairs (DEA), responsible for managing bilateral financial collaborations, confirmed that USAID’s funding was directed toward critical sectors, including agriculture, food security, renewable energy, water and sanitation, disaster management, and public health.
Breakdown of USAID Funding
According to the report, no portion of the funds was allocated for voter-related programs in India. Instead, USAID’s financial support was distributed across the following key areas:
- Climate Adaptation and Sustainable Forestry
- Energy Efficiency and Technological Advancements
- Water, Sanitation, and Hygiene (WASH) Initiatives
- Disaster Preparedness and Response
- Public Health and Healthcare Infrastructure
India’s collaboration with USAID dates back to 1951, with the U.S. having provided over $17 billion in economic assistance for more than 555 development projects across multiple sectors.
Political Controversy Over USAID’s Role
A political dispute erupted recently after the Department of Government Efficiency (DOGE), led by Elon Musk, announced the cancellation of a $21 million USAID grant, which was allegedly linked to voter participation efforts in India.
The issue gained traction when former U.S. President Donald Trump accused the previous Biden administration of allocating funds to influence voter turnout in India. However, India’s External Affairs Minister S. Jaishankar responded by stating that the government was reviewing the details of the funding claims.
“USAID operates in India under a developmental framework based on mutual trust. If there are any indications that funds were misused, it is essential to investigate,” Jaishankar stated.
Congress Criticizes BJP Over Misinformation
The Congress party strongly criticized the ruling BJP, accusing it of spreading misleading narratives regarding the USAID grant.
“BJP has been caught misleading the public. According to Congress leader Jairam Ramesh, $21 million was actually allocated for Bangladesh in 2022, not India.
Congress also questioned why the Indian government remained silent while figures like Trump and Musk continued making claims about U.S. funding in India.
Future Implications
With the controversy adding political tension, the Indian government is expected to closely monitor future international funding programs. The issue may continue to influence political debates ahead of the upcoming elections, potentially affecting diplomatic relations and policy decisions.
