MICROCAPITAL BRIEF: US Agency for International Development (USAID) to Provide $71m to Government of India for Banking, Clean Energy, Water and Sanitation

The US Agency for International Development (USAID), a government agency that provides international economic and humanitarian assistance, recently committed up to USD 71 million to the Government of India to support the country’s banking, clean energy and water and sanitation sectors. This commitment was made in furtherance of goals outlined at a September 2014 summit between Indian Prime Minister Narendra Modi and US President Barack Obama in the US capital of Washington, DC. Of the total commitment:

USD 20 million will go towards improving water and sanitation services through an Urban Water, Sanitation, and Hygiene (WASH) Knowledge initiative that is being set up in conjunction with the Indian Ministry of Urban Development. Through this initiative, India, the United States and partner organizations including the Bill and Melinda Gates Foundation will share innovations and exchange information regarding best practices in an effort to improve water and sanitation across India.

USD 41 million will go towards extending clean energy to 1 million people in the country over three years.

USD 10 million will be used to expand the Jan-Dhan initiative, a scheme created by Prime Minister Modi to increase the availability of banking services in India by providing services such as credit, insurance, direct benefits transfer and electronic payments.

The total amount disbursed for all three projects is subject to the availability of funds.

USAID administrator Rajiv Shah stated that through the partnership, “we are working to unlock opportunity for India’s most vulnerable people and pioneer solutions that will help end extreme poverty across the globe.” As of 2013, USAID had a total of USD 60.6 billion in budgetary resources.

By Ananya Tiwari, Research Associate

About United States Agency for International Development (USAID)
The United States Agency for International Development (USAID) is a government agency that provides international economic and humanitarian assistance. It focuses on areas such as economic growth, agriculture, trade, health, democracy, conflict prevention and humanitarian assistance. Under the Development Credit Authority (DCA), it provides credit guarantees that cover up to 50 percent of defaults on wholesale loans made by private financial institutions to institutions that lend on a retail basis to under-served borrowers. USAID had a total of USD 60.6 billion in budgetary resources in 2013.

Sources and Additional Resources

[1] USAID Press Release, http://www.usaid.gov/news-information/press-releases/nov-5-2014-usaid-administrator-shah-announces-water-and-sanitation-clean-energy

MicroCapital, October 23, 2014: “US Agency for International Development (AID), CGAP (Consultative Group to Assist the Poor), The Mastercard Foundation Award $1m to ideas42 for Financial Management Tool for Microentrepreneurs” https://www.microcapital.org/microcapital-brief-us-agency-for-international-development-aid-cgap-consultative-group-to-assist-the-poor-award-1m-to-ideas42-for-financial-management-tool-for-microentrepreneurs/

MicroCapital, December 20, 2013: “US Agency for International Development (USAID), NetHope Announce 3 Grants Totaling $42k to Support Electronic, Mobile Payments”
https://www.microcapital.org/microcapital-brief-us-agency-for-international-development-usaid-nethope-announce-3-grants-totaling-42k-to-support-electronic-mobile-payments/

MicroCapital Universe Profile: US Agency for International Development (AID): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=United+States+Agency+for+International+Development+%28

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