Chapter 29UNITED STATES OF AMERICA
29.1 The United States of America has been extending Economic Assistance to India regularly since 1951 except during the years 1972 to 1977. The US Development aid, and PL 480 assistance, are extended through the US Agency for International Development (USAID) and loans/export credit are extended by the US EXIM Bank etc. The total assistance offered upto 31.3.1999 has amounted to US$ 11283.769 million and the broad break-up of the same is as under:-
Particulars of Assistance
US $ in Million
Technical Cooperation Mission (Development Assistance Loan of $148.12 M & Technical Assistance &Grant of 461.21 Million)
Development Loan Fund loans repayable in Rupees (Govt. account $439.71 M & Non-Govt. Account $62.63 M)
Aids Loan repayable in $ (excluding Debt relief of $97.93 M)
PL-480 Title I cover table currency credits (excluding Debt relief of $5.55 M)
Export Import Bank loans (Govt. loans $346.66 M, Non-Govt. loans of $292.29 M)
PL-480 Title I Generating Rupee counterpart Fund excluding PL-480 Title II & III
AID Grants (including $322.13 M pertaining to 1971)
Debt Relief in the form of refinancing credit
vide item No. 3 above
vide item No 4 above
29.2. In the past, US assistance used to be in the nature of project and non-project loans, commodity assistance and grant. At present entire assistance from USAID is in the form of grants and are extended only for financing projects. Non-project assistance from USAID is no longer available. The details of loans and Grants are given in Annexure I and Annexure II respectively.
29.3. Commercial credits have also been offered in the past by the US EXIM Bank for financing certain procurement from USA. Details of assistance extended by US EXIM Bank are also given in Annexure I.
US India Rupee Funds
29.4 In January 1987 an agreement was signed with USA for the establishment of US India Rupee Fund with an initial capital of Rs.127.49 crore out of the rupee holdings of USA in India. This fund alongwith interest accruing thereon from time to time were being utilised for approved cooperative activities in the field of Science and Technology, Education, Culture etc. USIF agreement has expired on 7.1.1998.
Impact of sanctions on US Development Assistance to
29.5 There has been no substantial impact of sanctions on US Development Assistance to India. All assistance relating to humanitarian needs, food or agricultural commodities continued to be available. However, activities under US India fund (USIF) have been put on hold. USAID has obligated US $ 31.3 million of development assistance in US Fiscal year 1998 (October 97 to September 98) as against US $ 55.20 million obligated in US Fiscal year 1997.