USAID allocates USD 750 million for seven development projects in India in FY24, no voter turnout funding

The latest Finance Ministry report has revealed that USAID has allocated USD 750 million for seven major projects in India during the fiscal year 2023-24, with a focus on sectors such as agriculture, health, renewable energy, and disaster management. These projects, part of a longstanding partnership with the U.S. that dates back to 1951, do not include any funding for initiatives aimed at increasing voter turnout.

According to the report, the Department of Economic Affairs confirmed that these projects, with a combined value of approximately INR 6,000 crore, received USD 97 million in the 2023-24 fiscal year. The funding is targeted at key areas including agriculture and food security, water, sanitation and hygiene (WASH), renewable energy, disaster management, sustainable forests, climate adaptation, and energy efficiency technology commercialization.

USAID has provided over USD 17 billion in assistance to India since its inception, executing more than 555 projects across various sectors. However, the agency's activities have recently sparked controversy amid allegations of potential electoral influence. These claims gained traction after Elon Musk’s company, DOGE (Department of Government Efficiency), announced that it had cancelled a USD 21 million grant intended to boost voter turnout in India—a claim repeatedly echoed by former U.S. President Donald Trump.

External Affairs Minister S. Jaishankar has addressed the allegations, calling them "concerning" and assuring that an inquiry is underway. He stressed that USAID’s involvement in India has been solely for developmental purposes, emphasizing that any suggestion of ulterior motives is being taken seriously.

Opposition leaders, particularly from the Congress party, have also voiced their concerns. Congress General Secretary Jairam Ramesh accused the ruling Bharatiya Janata Party (BJP) of spreading misinformation, contending that the disputed USD 21 million grant was intended for voter turnout projects in Bangladesh rather than India. Ramesh criticized the government for not adequately addressing the allegations, urging Prime Minister Narendra Modi and Minister Jaishankar to clarify their stance.

As political debate intensifies, the controversy highlights the challenges of managing foreign aid amidst sensitive domestic political issues. Both the Indian government and USAID are expected to face increasing scrutiny as the investigation into these claims continues.