In the wake of US President Donald Trump’s sharp criticism of USAID’s financial contributions to India, the annual report from the Finance Ministry, led by Nirmala Sitharaman, reveals that the $750 million given by the US agency has been directed towards government initiatives in areas such as food, agriculture, rural development, energy, and environmental projects during the 2023-24 fiscal year. Importantly, none of these initiatives are associated with political funding in India.
“At present, seven projects with a combined budget of approximately $750 million are being executed by USAID in cooperation with the Government of India,” the Finance Ministry’s report for 2023-24 indicates. For this financial year, USAID has committed a total of $97 million (around Rs 825 crore) across these seven projects, according to the report.
The funded projects encompass themes such as agricultural and food security programs, water, sanitation, and hygiene (WASH), renewable energy, disaster management, and health. Additionally, financial commitments were made to the Sustainable Forests and Climate Adaptation Programme, as well as the Energy Efficiency Technology Commercialisation and Innovation Project, as outlined in the annual report.
President Trump has sparked a debate by alleging that the Biden administration is using USAID to channel $21 million for promoting voter turnout in India, aiming to influence elections. In response, External Affairs Minister S. Jaishankar remarked, “Some information has been disseminated by individuals from the Trump administration, and that is understandably concerning. We are examining it as a government. I believe the facts will surface. USAID was permitted to operate here in good faith for altruistic purposes; now, there are claims from the US suggesting activities conducted in bad faith. This raises alarms, and if there is merit to these claims, then the public deserves to know who is implicated.”
The Congress party has called for a white paper detailing the funds India receives from international developmental agencies and aid mechanisms.
