The Finance Ministry recently shared that USAID gave money for seven projects in India, worth a total of USD 750 million in 2023-24. This has led to a big political argument. Some people think USAID was trying to influence Indian elections. However, the report clearly states that no money was given to increase voter turnout.

USAID's role and funding details

According to the annual report of the Finance Ministry for 2023-24, the United States Agency for International Development (USAID) is currently implementing seven projects in partnership with the Indian government. These projects have a total budget of approximately USD 750 million.

The report states, "Currently, seven projects worth a total budget of USD 750 million (approx.) are being implemented by USAID in partnership with the Government of India." For the financial year 2023-24, USAID obligated USD 97 million (around Rs 825 crore) towards these projects.

The Department of Economic Affairs, which oversees bilateral funding arrangements, shared details of these projects in the report. The funds were allocated to various sectors, including agriculture and food security, water, sanitation and hygiene (WASH), renewable energy, disaster management, and health. Additional funding was provided for the Sustainable Forests and Climate Adaptation Program and the Energy Efficiency Technology Commercialisation and Innovation Project.

The report further highlights that since 1951, USAID has provided over USD 17 billion in economic assistance to India for more than 555 projects.

Political controversy over alleged election influence

The controversy started when Elon Musk's group, DOGE (Department of Government Efficiency), said it had cancelled a USD 21 million grant that was supposed to help increase voter turnout in India. The debate grew bigger when US President Donald Trump accused the previous government, led by Joe Biden, of giving USD 21 million to India for the same purpose.

Responding to these claims, External Affairs Minister S. Jaishankar expressed concern, stating, "The information put out by the Trump administration is 'concerning' and that the government is looking into it." He emphasised that USAID was permitted in India "in good faith, to do good faith activities," but now there are allegations from the US about "activities which are in bad faith."

Meanwhile, the Congress party attacked the BJP, accusing it of spreading "fake news from America." Congress leader Jairam Ramesh criticised the ruling party, saying, "BJP is a procession of liars and illiterates. The news about USD 21 million, on which the BJP and their bootlickers were jumping, turned out to be fake. The USD 21 million in 2022 was not for 'voter turnout' in India, but for Bangladesh."

The Congress further questioned Prime Minister Narendra Modi and External Affairs Minister S. Jaishankar for their silence while US President Donald Trump and Elon Musk allegedly "insulted" India.

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