USAID invested $750 million in India’s development projects in FY 24: Finance Ministry Report

The United States Agency for International Development (USAID) reportedly influenced Indian elections, which has sparked a rising political issue.

According to the Finance Ministry's most recent annual report, USAID sponsored seven projects totaling $750 million in 2023–2024.

"Currently, seven projects worth a total budget of $750 million (approx.) are being implemented by USAID in partnership with the Government of India," reads the Finance Ministry's annual report for 2023-24.

As per the report, USAID allocated $97 million, or roughly ₹825 crore, to these seven initiatives during the 2023–24 fiscal year.

The year's financed projects were also disclosed by the Department of Economic Affairs, which manages bilateral funding agreements.

The report makes clear that no funds were allotted to increase voter turnout, despite political assertions to the contrary.

Funds were instead allocated to programs pertaining to health, disaster management, renewable energy, agricultural and food security, and water, sanitation, and hygiene (WASH).

Funding was also allocated to the Energy Efficiency Technology Commercialization and Innovation Project and the Sustainable Forests and Climate Adaptation Program.

Since 1951, the United States has provided India with bilateral development assistance, which is mainly managed by USAID. The organization has given India more than $17 billion for more than 555 projects since its founding.

The political dispute bubbled up earlier this month when the Elon Musk-led Department of Government Efficiency (DOGE) said it had revoked a $21 million grant to India aimed at promoting "voter turnout."

Additionally, it has been repeatedly claimed by US President Donald Trump that USAID sent $21 million to India for this purpose during the Biden administration.

In a response, External Affairs Minister S Jaishankar called the Trump administration's information as "concerning," adding that the government is looking into the situation.

In India, USAID was permitted "in good faith, to do good faith activities," he emphasized, adding that recommendations made in the United States regarding "bad faith activities" are being closely examined.

The Congress party retaliated by accusing the BJP of disseminating "fake news from America" and requesting explanations from Prime Minister Narendra Modi and External Affairs Minister Jaishankar for their inaction on what they saw as repeated jabs from Musk and Trump.

"BJP is a procession of liars and illiterates. The news about the $21 million, on which the BJP and their bootlickers were jumping, turned out to be fake. The $21 million in 2022 was not for 'voter turnout' in India, but for Bangladesh," said Congress General Secretary Jairam Ramesh.