The US is dismantling USAID and transferring its functions to the Department of State, causing significant concern.
This isn’t just a bureaucratic reshuffle; it’s part of a broader effort to slash overseas spending, including a 90-day freeze on foreign development assistance funding and significant cuts to USAID personnel.
The implications are far-reaching, impacting programs in health, education, disaster relief, democracy, human rights, and gender equality in over 100 countries.
For decades, USAID has been a silent yet powerful force, supporting everything from clean water access to critical aid
during crises.
For India, USAID’s dismantling leaves a significant void. As I reflect on its decades-long presence, I see an agency that has been a pivotal partner, investing substantial resources and expertise across countless sectors.
In fiscal year 2024 alone, USAID committed $750 million across seven key projects in India. Their strategic funding touched millions, focusing on pressing challenges like maternal and child health, agriculture and food security, water, sanitation, and hygiene (WASH), renewable energy and energy efficiency, disaster management, and environmental sustainability.
What truly distinguished USAID, in my opinion, was not just the volume of its investment but the manner in which the money was used.
USAID fostered innovation and drove systemic change, often behind the scenes. Their philosophy, “The Journey to Self-Reliance,” wasn’t just a slogan; it emphasized supporting human dignity and empowering communities to shape their own futures. They were willing to fund early-stage pilots, delve into in-depth research, and launch ambitious, large-scale initiatives, always in close collaboration with Indian governments and U.S. universities.
Unlike many corporate social responsibility (CSR) grants, which are typically single-year commitments tied to immediate, measurable outcomes, USAID embraced riskier, longer-term projects. Think about their impact on bolstering government health systems or scaling technology-driven solutions—these require patience and a willingness to invest in the unknown. Examples of their transformative change include reducing maternal mortality rates, improving family planning, combating HIV/AIDS, conserving forests, and promoting energy efficiency. Their departure truly marks the end of an era of significant international partnership in India’s development journey.
This brings me to the critical question now facing India’s non-profit sector: Can corporate social responsibility (CSR) funds, mandated by the Companies Act, 2013, step up and evolve to prioritize innovation?
With India’s CSR contributions now exceeding Rs 30,000 crore annually (and projected to hit Rs 50,000 crore by 2030), our corporate sector undeniably has the financial muscle to fill this gap.
In the financial year 2023-2024, India’s listed companies spent Rs 17,967 crore on Corporate Social Responsibility (CSR). This was a 16% increase compared to the Rs 15,524 crore spent in 2022-2023. Companies were mandated to spend Rs 18,309 crore, but a portion (Rs 2,329 crore) was transferred to unspent CSR accounts for future utilization.
However, I observe that India’s CSR ecosystem, while robust in its scale, often leans towards caution. Companies legally required to allocate 2% of their profits to social causes frequently opt for short-term, low-risk projects.
The focus tends to be on programmatic and administrative costs rather than on groundbreaking innovation. Even ultra-high-net-worth individuals (UHNIs) often follow suit, preferring tangible, measurable results over experimental models. This conservative stance inadvertently limits the ability of nonprofits to pilot new ideas, iterate, and truly scale successful innovations—precisely the areas where USAID excelled.
To truly replace USAID’s invaluable legacy, I believe India’s CSR landscape must embrace longer-term, more risk-tolerant grants. We need to see more corporate evangelists championing multi-year commitments and educating boards on the long-term value of high-impact, innovative projects. Collaborative funding models, where multiple partners co-invest, can also help reduce perceived risks for new programs.
Only then can we unlock the full potential of innovation and drive the systemic change necessary to achieve India’s ambitious development goals. It’s time for our manufacturing momentum to match our energy ambition and for CSR to become a catalyst for a future-ready India. The void is clear; the opportunity for our own corporate sector to lead is even clearer.
Some strong CSR initiatives led by the Indian corporate sector:
Education:
• Funding for schools and libraries by DRIIV Foundation and Zila Parishad Jhalawar.
• Construction of libraries and classrooms, digital equipment, and internet access.
Scholarship Programs:
• Infosys Foundation and other foundations offer scholarships to students, especially from underprivileged backgrounds.
STEM Education:
• Tata Consultancy Services promotes STEM education to foster innovators.
Healthcare & Sanitation:
• Construction of hospitals and medical equipment by Reliance Industries and Hindustan Zinc.
Mid-Day Meals and Nutrition Programs:
• JSW Steel and Balkrishna Industries provide nutrition programs in rural areas.
Sanitation and Water Projects:
• HCL Technologies improves sanitation and provides clean drinking water.
Rural Development:
• Infrastructure development by Power Grid Corporation of India Limited.
Sustainable Agriculture:
• ITC Limited and Dalmia Cement support sustainable agricultural practices.
