Amid growing political controversy over allegations that USAID attempted to influence Indian elections, the Finance Ministry’s latest annual report clarified that the agency funded seven projects in India worth $750 million during 2023-24, none of which were related to boosting voter turnout.
“Currently, seven projects worth approximately USD 750 million are being implemented by USAID in partnership with the Government of India,” the Finance Ministry’s 2023-24 report stated.
The report also revealed that USAID committed USD 97 million (around Rs 825 crore) during the fiscal year toward these projects. The Department of Economic Affairs, which oversees bilateral funding arrangements, provided a breakdown of the funded initiatives.
The report confirmed that no funds were allocated for voter turnout initiatives. Instead, the funding supported projects focused on agriculture and food security, water, sanitation and hygiene (WASH), renewable energy, disaster management, and health. Additionally, resources were directed toward the Sustainable Forests and Climate Adaptation Program and the Energy Efficiency Technology Commercialization and Innovation Project.
USAID has been involved in India since 1951, providing over USD 17 billion in economic assistance across 555 projects spanning multiple sectors.
The controversy erupted earlier this month when Elon Musk-led DOGE (Department of Government Efficiency) claimed it had canceled a USD 21 million grant allegedly aimed at boosting voter turnout in India. Former US President Donald Trump further fueled the debate, asserting that USAID under Joe Biden’s administration had allocated the funds for this purpose.
In response, External Affairs Minister S. Jaishankar described the claims as “concerning” and assured that the government was investigating. “USAID was allowed in India in good faith, to conduct good faith activities. Suggestions implying otherwise are troubling,” Jaishankar stated.
Meanwhile, the Congress party criticized the BJP, accusing it of spreading “fake news” and demanding answers from Prime Minister Narendra Modi and Jaishankar for remaining silent while Trump and Musk allegedly disrespected India.
Congress general secretary Jairam Ramesh slammed the BJP, calling it a “procession of liars and illiterates,” and clarified that the USD 21 million grant mentioned was intended for Bangladesh in 2022, not India.
The Finance Ministry’s clarification aims to quell speculation, reaffirming that the USAID-funded projects in FY24 were solely focused on development and had no ties to India’s electoral process.