$750M Mystery: Where’s USAID’s Money Really Going In India?
The 2023-24 Finance Ministry report clarifies USAID’s funding in India, countering political controversy over alleged election interference and reaffirming its focus on development initiatives.
The United States Agency for International Development (USAID) has been a vital development partner for India since 1951 and has provided more than $17 billion in support to multiple sectors. The just-released Finance Ministry annual report for 2023-24 has thrown light on the funding activities of USAID in India during the financial year. Amid the political furore over USAID’s alleged role in interfering in Indian elections, the report clarifies that USAID projects had nothing to do with voter turnout but were centred on priority issues like agriculture, food security, renewable energy, disaster management, and healthcare.
Key Highlights from the Finance Ministry Report
According to the report, USAID is implementing seven projects in India with a combined budget of approximately $750 million. For the financial year 2023-24, the agency has obligated $97 million (around ₹825 crore) towards these projects. The Department of Economic Affairs oversees bilateral funding arrangements and has detailed the funded projects in its report, confirming that no funds were allocated for voter turnout initiatives.
The seven projects funded by USAID in India during FY24 include:
- Agriculture & Food Security Program
- Water, Sanitation, and Hygiene (WASH) Initiatives
- Renewable Energy Development
- Disaster Management Programs
- Healthcare Improvement Initiatives
- Sustainable Forests and Climate Adaptation Program
- Energy Efficiency Technology Commercialization and Innovation Project
Political Controversy and Allegations
The report comes amid allegations that USAID had allocated $21 million towards voter turnout initiatives in India. These claims were fueled by statements made by Elon Musk’s DOGE (Department of Government Efficiency), which alleged that such funding had been cancelled due to political reasons. Additionally, former U.S. President Donald Trump asserted that USAID under the previous administration, led by Joe Biden, had allocated funds to India for voter turnout purposes.
The allegations drew a strong reaction from India’s External Affairs Minister S. Jaishankar, who responded to these charges alarmingly. He said USAID could operate in India in good faith because it would engage in legitimate development activity. “Suggestions are being made out of America that there are activities which are in bad faith,” Jaishankar declared, reiterating that the Indian government was keeping a close watch on developments.
Clarification from the Finance Ministry
The report of the Finance Ministry clearly mentions that there was no USAID funding in FY24 for voter-related activities in India. Rather, the funds were invested in development projects that were required. This clarification was done to dispel misinformation and ensure clear transparency so that bilateral cooperation in development areas can be transparent and accountable.
Congress vs. BJP: The Political Fallout
The controversy politicized in India, with the Congress party alleging that the governing BJP was disseminating misinformation. Congress general secretary Jairam Ramesh stated, “BJP is a procession of liars and illiterates. The news about $21 million, on which the BJP and their bootlickers were jumping on, turned out to be fake. The $21 million in 2022 was not for ‘voter turnout’ in India but for Bangladesh.”
Congress further demanded an explanation from Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar, questioning why the Indian government remained silent when U.S. leaders, including Trump and Musk, allegedly insulted India.
BJP leaders, in return, employed the scandal to attack the opposition and criticize Congress’s previous engagement in foreign-funded projects. The overall debate about foreign intervention in Indian internal affairs only testifies to the parties’ continuous disagreement on the matter.
USAID’s Long-Term Impact in India
Apart from the controversy, USAID’s efforts towards the development of India have been considerable. The agency has assisted critical sectors over the years, such as:
- Public Health: USAID has helped eradicate polio, fight tuberculosis, and improve healthcare infrastructure.
- Renewable Energy: The agency has collaborated with Indian institutions to encourage solar and wind power and minimize the use of fossil fuels.
- Disaster Preparedness: India’s ability to respond to cyclones and floods has primarily improved thanks to USAID.
- Agricultural Advancements: Collaborations with Indian farmers have increased crop yields and food security.
Although USAID’s presence in India has generally been accepted, questions of transparency and political impartiality persist, especially during elections.
Implications for India-US Relations
USAID’s alleged involvement in election-related support has provoked controversy and tense diplomatic relations between America and India. As an emerging Indian player in global affairs, foreign money management and making it align with national interests remains a long-standing priority. The Indian government’s monitoring of USAID activities signals a larger move to keep international affiliations open for the welfare of both nations while still remaining apolitical.
Despite the political controversy, India and the United States maintain a healthy strategic partnership based on cooperation in defence, trade, technology, and global climate issues. USAID activities in India continue to address priorities of strategic development objectives, but transparency in releasing funds is crucial in evading future scandals.
Conclusion
The Finance Ministry report for 2023-24 sheds light on USAID expenditures in India, assuring that agency projects were development initiatives and not election-influenced programmes. While political brouhaha regarding foreign interference in Indian elections continues to remain thick over the air, the government’s confrontationist strategy regarding foreign funding transparency is a step towards accountability.
The contribution of USAID to the development of India has been enormous in the sectors of healthcare, energy, disaster relief management, and agriculture. Yet, as India establishes itself as a power globally, it will become necessary to see that all international collaborations are politically non-influential to allow for national sovereignty and faith in the government.
The broader lesson from this episode is the importance of verifying facts before political narratives take over. With India’s elections around the corner, such debates will likely continue, but factual reporting and transparency will remain essential in separating truth from misinformation.
