Note: This document may not always reflect the actual appropriations determined by Congress. Final budget allocations for USAID's programs are not determined until after passage of an appropriations bill and preparation of the Operating Year Budget (OYB).

INDIA

FY 1998 Development Assistance
..........
 $55,700,000
FY98 P.L. 480 Title II
..........
 $80,122,000

Introduction

USAID's program in India responds to three key U.S. interests: increased opportunities in trade and investment; global concerns about environment and health; and humanitarian efforts in alleviating world poverty and reducing malnutrition. With nearly a billion people, India is not only the world's largest democracy but a country of enormous economic and political potential. The United States is India's largest trade and investment partner. In recent years, annual trade between the two countries has been approximately $9 billion; U.S. direct investment in 1996 was about $200 million and portfolio investment in 1995-96 was about $800 million. Expanded economic opportunities in India depend on the pace of India's economic reform process, begun in 1991 and undergoing a difficult political transition this year. They also depend on India's ability to improve infrastructure and its human resource base.

India's success in grappling with these demands is of global concern. India's industrial sector, the tenth largest in the world, is the fifth largest and second fastest growing producer of greenhouse gases. Much of its industrial growth is still to come and by incorporating new environmentally sound technologies, India can significantly reduce the impact of greenhouse gases on the world's environment. Its growing population and concentration of poverty in urban areas have significant implications for the development and spread of communicable diseases--including HIV/AIDS, malaria, TB and polio. Continued economic growth will be critical to finance infrastructure and social services required to reduce health threats and to allow inroads in alleviating India's massive poverty. The role and low status of women must also be transformed to speed and sustain economic growth. USAID is helping India with these challenges through programs supporting economic reform, promoting pollution prevention and environmental protection, enhancing food security, developing women's initiatives and strengthening services, both public and private, in health and family planning.

The Development Challenge

The national election in May 1996 has ushered in a fragile coalition government that is trying with difficulty to continue the previous government's economic reform process. Trade and foreign investment are at roughly the same levels as the past three years, inflation is inching up but not yet threatening economic growth, and the GDP is growing at about 6%. India's extensive natural resources, well-developed industrial base, diversified agriculture sector, and burgeoning middle class--now more than 100 million--offer the potential for rapid and broad-based economic growth that can rival its east Asian neighbors. However, conventional wisdom holds that such growth is dependent upon sustainable economic growth rates of between 7% and 8%. For this to occur, the reform process must accelerate and expand.

India needs sustained economic growth to bring the 400 million people now living below the poverty line into the modern economy. To obtain this growth--and to make the transition to a strong market economy--will require renewed commitment to the reform process. It is still unclear whether the current government will be able to marshall the political will for this commitment.

At the same time, India's ability to achieve a sustainable pace of development is affected by its ability to deal with population growth. India's population has doubled in the last 40 years and could double again, the equivalent of another China, by the time growth stabilizes. Such growth has dramatic implications not only for the economy, but also for urban infrastructure, health and social services,and the natural resource base.

The potential for USAID to have significant impact on economic reform, health and family planning, food security, and environment through limited, but well-targeted assistance, has been demonstrated. USAID programs helped launch a national depository, an institution vital to efficient operation of the secondary capital market, and are demonstrating new approaches to financing urban infrastructure; they have shown that by meeting the expressed needs of married couples, India can make major inroads into reducing population growth; they have demonstrated that joint ventures with U.S. firms can commercialize new energy efficient and pollution reducing technologies in India; and they have proven that food aid, if programmed carefully, can contribute importantly to improving nutrition. While progress is being made, India is not an early candidate for rapid graduation from USAID development assistance, saddled as it is with a total external debt, as of September 1995, of $93.84 billion. However, India maintains a strong record of servicing its debt.

Other Donors

In 1996-97, the United States provided about 2.5% of the $6.661 billion in donor assistance to India and is its sixth largest donor. Major donors are: the World Bank, the Asian Development Bank, the European Union, Japan, Germany, and the United States.

FY 1998 Program

The USAID program in India will achieve demonstrable results in advancing four of the Agency's strategic goals--economic growth, population and health, environment and humanitarian assistance. It advances U.S. interests in trade and investment through its support for sustained economic growth. It addresses global concerns about population growth and the HIV/AIDS pandemic. It strongly supports initiatives under the Indo-U.S. Common Agenda for the Environment (CAE) signed in 1995 by both countries to encourage collaboration on environmental issues of global and bilateral concern. It responds to humanitarian concerns about India's widespread poverty and malnutrition.

The program has strategic objectives in four areas:

It also has three special program objectives:

Agency Goal: Encouraging Broad-based Economic Growth

With limited funding for economic growth, USAID's strategy targets activities that have broad impact through policy reform or by support to areas with significant multiplier effects. For example, USAIDhelped the private housing finance sector grow from a single institution to a network of 78 companies of which 21 companies are now classified and approved by the National Housing Bank (NHB). These companies have more than 250 branches managing more than $2 billion in credit. Since USAID helped launch India's over-the-counter exchange in 1993, the exchange has raised more than $76 million for small enterprises.

The current capital market assistance program is working with the Securities and Exchange Board of India (SEBI) to increase the transparency and administrative efficiency necessary to attract domestic and foreign capital. Last year, the market raised more than $8 billion in new capital, with significant sums coming from foreign--including U.S.--investors. USAID is supporting continued growth of the market by providing assistance on both policy and regulatory reform and the introduction of new technologies required to assure protection to investors. USAID's Mumbai-based contractor, Price Waterhouse, helped the National Stock Exchange (NSE) to establish India's first securities depository which became operational on November 8, 1996. It is also assisting SEBI in the development of: (1) disclosure standards for the issuers of equity and debt; (2) market surveillance, inspection and enforcement plans that meet international standards; and (3) regulations for an efficient securities trade settlement system.

Inadequate urban infrastructure, such as water supply, sewage and waste treatment systems, is a significant impediment to sustained growth in India. It is now clear that the resources required to meet the demand for these urban services cannot come from the public sector. USAID, therefore, is supporting the development of a debt market to finance such environmental infrastructure projects in India. The program provides $125 million in loan guarantees (Housing Guaranty funds), as well as technical assistance and training, to generate commercially viable, urban infrastructure projects. USAID has already developed the first project under the program in Tamil Nadu with $25 million in loan guarantees support to leverage the first $85 million phase of an important water and municipal sewage project. The project is expected to come to a financial closure and start implementation in FY 97 with a Build-Operate-Transfer (BOT) operator appointed and functioning. In the second such project, USAID is helping Ahmedabad Municipal Corporation to access capital markets through the offering of bonds worth $25 million for investment into municipal infrastructure projects. The USAID-supported Financial Institutions Reform and Expansion (FIRE) project has been instrumental in the completion of the credit rating for the Ahmedabad Municipal Corporation, with an investment grade (A+) rating for floating these bonds, the first credit rating ever for an Indian municipality.

USAID's housing finance program promotes the development of a financially sound, private sector, housing finance system. The objective is to expand long-term home finance for median-income and below-median income households. Building on past successes, this program, which draws on $69.6 million in USAID loan guarantees, provides capital through the National Housing Bank to housing finance companies for on-lending to lower income families. The expanded policy agenda includes increasing the financial resources available to the housing sector, expanding the number of market-oriented housing finance institutions, expanding the supply of housing finance to below-median income households, and strengthening outreach and capabilities of "community based financial institutions" to provide financial services to lower income and informal sector families. The program assistance ends in September 1997.

Agency Goal: Stabilizing World Population Growth and Protecting Human Health

With nearly a billion people, India has one-sixth of the world's population. At current rates of growth, its population will reach 1.6 billion and surpass China by the middle part of the next century. This growth has obvious implications for health and nutrition, growth in per capita income, demand for education and public services, employment, and the environment.

Nevertheless, impressive gains in reducing population growth have been made. Fertility rates have dropped by almost half in the past 30 years, and some southern states like Tamil Nadu and Kerala have reached the point of zero growth. If north India were able to achieve replacement levels similar to those in the south, India would have 480 million fewer people by the time it reaches population stabilization at the national level around 2088.

USAID's largest family planning program focuses on the north Indian state of Uttar Pradesh, India's most populous state. The mandate of the program is to provide contraceptive choice to couples who are at risk of having a child, who do not want to be pregnant, and who are not using effective contraception. Service provision is accomplished in a holistic manner, maintaining a comprehensive, women-centered approach.

Since 1994, the program has established an autonomous agency, the State Innovations for Family Planning Services Agency (SIFPSA), to coordinate implementation of the Innovations in Family Planning Services (IFPS) project. In the three years of program implementation, SIFPSA has brought both private and public sector services together in program implementation. Senior district officials, family planning managers and traditional doctors are committed to increasing access, improving quality, and creating greater demand for a broad range of reproductive health and family planning services. The agency has financed training of over 3,000 doctors in family planning counselling and the use of oral contraceptives; developed training curricula and programs for nurse midwives, private practitioners and traditional doctors; and provided USAID project-funded grants to 66 non-governmental organizations (NGOs) involved in providing a range of health and family planning services, thereby increasing the coverage to 10 million people. During the next three years, it will train 12,000 village doctors, upgrade hundreds of primary health care centers, and support a major campaign for the social marketing of contraceptives.

One major contribution in the past year has been USAID's role in the Government of India's (GOI's) adoption and launching of the Child and Reproductive Health (CRH) initiative. USAID provided operations research, data and guidance that supported the GOI program shift from the achievement of demographic goals through contraceptive targets to the empowering of individuals and couples to use contraceptives for planning and achieving their reproductive intent. One major concern is that the withdrawal of targets in the absence of a well-conceived and tested alternative may lead to deterioration of program functions. USAID, in partnership with other donors, is committed to keeping this issue foremost in all policy dialogue and program implementation.

As part of the effort to provide data for informed decision making, USAID financed the national family health survey, India's most complete analysis to date of family health, covering 24 states and based on interviews with nearly 90,000 women. It supported analysis, publicity and distribution of the valuable baseline data on demographic, health and nutrition status, fertility and family planning practices, and is the key to measuring the results of USAID's efforts. It was so well received that USAID is in the midst of negotiating with the GOI the mechanism for a follow-on survey.

Through the Private Voluntary Organizations in Health-II (PVOH-II) activity, USAID continued to support 85 NGOs in northern India in providing maternal and child health services to approximately two million beneficiaries in underserved rural communities. The program has resulted in a 40% increase in immunization coverage which now stands at 90%. Ante-natal coverage has increased from 30% to 70% . There has been a significant increase in awareness and use of family planning methods. Use has increased from 15% to 50%. NGO capacity to reach communities with quality health care has been strengthened through training and technical assistance.

USAID has continued its long involvement with and support to India's immunization program through assistance to the development of the National Institute of Biologicals which, when complete, will assure that high quality vaccines and biological products are used and produced in India. Commencing in 1995, USAID has pledged support to India's polio eradication initiative--one of the largest polio eradication drives in the world. In 1995, more than 90% of India's 75 million children under three years of age were immunized. The National Immunization Days (NIDs) for 1996 (December 1996 and January 1997) continued to receive USAID assistance.

USAID has finalized the results package for a new Women and Child Health (WACH) initiative in selected districts in the north Indian state of Madhya Pradesh. The initiative will focus on improving women's reproductive health services including birth spacing information, anemia prevention, and safe delivery care. The consequent gains in women's health will result in reduced neonatal mortality. Other interventions such as nutrition education, immunization, and management of acute respiratory and diarrheal diseases are designed to reduce infant mortality.

The Program for Advancement of Commercial Technology Project's Child and Reproductive Health Component (PACT/CRH), which has the goal of increasing commercial production, distribution and marketing of child survival and reproductive health products in India, has made substantial progress during the last twelve months. Specifically, the London Rubber Company, the world's largest producers of condoms, has received a loan from the Industrial Credit and Investment Corporation of India Limited (ICICI) under the PACT/CRH project to substantially increase its marketing and distribution of condoms throughout India and to improve its quality maintenance program. This ambitious nation-wide undertaking will have substantial positive impact on HIV and STD prevention and prevention of unwanted pregnancies. Furthermore, the program is conducted on a commercial basis and is, therefore, sustainable without further inputs. In addition to this activity, negotiations are underway between ICICI and various private companies for increasing the marketing and distribution for IUDs, oral rehydration salt (ORS), cold chain equipment and diagnostic products for various infectious diseases.

Agency Goal: Enhancing Food Security

With nine successive good monsoons, India's food grain production has increased markedly, but massive poverty, inadequate infrastructure and policy failures at both state and federal levels mean more than half of India's young children are malnourished and maternal malnutrition is widespread. One-third of India's population, or 300 million persons, is food insecure. Long-term food security is challenged by India's rapid population growth--18 million people every year--and the real likelihood of a failed monsoon.

USAID's strategy is to focus its food aid increasingly in the northern states where the need is greatest. The P.L. 480 Title II program, managed by the Cooperative for Assistance and Relief Everywhere (CARE) and the Catholic Relief Services (CRS), supports efforts to improve maternal and child nutrition and health, thereby reducing mortality rates, influencing fertility, and complementing our efforts in population and health. In 1995, both organizations moved more of their resources to the north. CARE closed operations in three southern states to concentrate more in the north; CRS closed operations in Tamil Nadu and Kerala and has initiated a program in Uttar Pradesh.

Both CARE and CRS work through local organizations to reach some seven million children and pregnant and lactating mothers. CARE supports the GOI's Integrated Child Development Services Program, the largest child survival program in the world. Responding to a USAID-funded impact evaluation, CARE has begun an integrated nutrition and health program to strengthen ancillary nutrition and health services in coordination with P.L. 480 Title II food supplements in more than 92,000 of India's villages. CRS works through organizations affiliated with people such as Mother Teresa and the Dalai Lama to reach some of India's most destitute. Included among the program's successes are the following:

CARE and CRS have developed an impressive logistical base, allowing the program to move large quantities of food to a widely dispersed beneficiary population and to respond quickly with disaster assistance.

CARE and CRS outreach systems provide access to the most remote geographical areas and to some of the most vulnerable people, including tribes and former 'untouchable' castes.

CARE and CRS programs support established women's groups and provide a point of entry for widespread dissemination of family planning, health, and nutrition information.

Agency Goal: Protecting the Environment

The combination of accelerated economic development and rapid population growth could precipitate an ecological crisis that reverses India's hard won economic gains and increases negative impacts on the global environment. Already the second fastest growing producer of greenhouse gases in the world, India could triple its emissions between 1987 and 2010 if there is no change in current practices. Carbon dioxide emissions are expected to double during the same period, and chloro-fluorocarbon (CFC) emissions, which cause ozone depletion, are growing rapidly. Mobile source, or vehicle pollution, is one of the most insidious and pervasive forms of air pollution in India. Major Indian cities, including New Delhi, Calcutta and Mumbai, are on the top ten list of the most polluted cities in the world, and the economic and health impacts (including asthma and other respiratory problems) are becoming endemic. With vehicle sales growth exceeding 20% per annum in many categories, air pollution worsens daily. In recognition of India's increasing importance to global environmental concerns, the U.S. signed with India the Common Agenda for the Environment (CAE), pledging both countries to collaboration on environmental issues. In support of CAE, USAID is working with the private sector, NGOs, and municipal and central government representatives in a variety of programs.

India's demand for power, expected to double in the next five years, poses a significant threat to the global environment. Power plants fueled with high ash coal are a major source of pollution in India. USAID's environmental energy program is increasing the percentage of power generated by clean technologies to decrease the volume of CO2 emissions per unit of power generated. USAID promotes the development of innovative clean coal and renewable energy technologies. For example, USAID assistance has resulted in the establishment of India's first commercial coal washery for power plants. A small USAID grant for this Indo-U.S. joint venture has leveraged private investments of over $14 million. Multilateral development banks are preparing more than $1 billion in new energy efficiency and environmental programs.

USAID funds are catalyzing U.S.-India joint ventures and technology links for the manufacture and installation of a variety of air pollution control equipment to reduce emissions from steel, cement, copper smelter, and thermal power plants. Examples of results from successful ventures are 100% reduction of arsenic emissions at copper smelters, recyclying of sulfuric acid, recyclying of caustic soda, improved efficiency in the operation of power plants, power plant emission controls, and the accelerated growth of U.S.-India environmental industry collaboration. The next stage will build on the growing recognition by major portions of key Indian industrial sectors that improved environmental management will make them more competitive as well as benefitting the environment. Activities will support the introduction of ISO 14000 environmental management techniques, greening of supplier production chains and greater linkages to U.S. businesses.

A principal criterion for USAID's pollution prevention activities is their potential to serve as a catalyst to leverage expansion and follow-on activities supported by the private sector and other donors such as the World Bank and Asian Development Bank. USAID assisted the World Bank in the development of its $250 million industrial pollution control project. It is also coordinating with the Asian Development Bank on environmental projects, including one designed to develop environmentally sound coal technology. Because of the considerable amount of donor activity in the environment sector, USAID maintains an active dialogue with other donors in this area. USAID has been particularly successful in leveraging, as demonstrated by Indian investments which are additional to the USAIDprogram, more than $10 million in air and water pollution control equipment and hundreds of millions in donor and privately financed electric power projects.

In addition to promoting increased private investment in clean power generation, the USAID program also targets technical assistance on policies, regulations and technologies that can dramatically reduce the amount of air pollution per unit of power generated. USAID-financed technical assistance to state electricity boards and the GOI facilitates the evaluation and processing of the numerous pending private power investment proposals which will result in more efficient and environmentally sustainable plants.

India's rapidly growing cities pose crucial environmental challenges: poorly managed urbanization, weak local governments, and the near absence of functioning urban infrastructure contribute to deplorable conditions affecting growing numbers of families. This situation leads to environmental degradation downstream from cities that lack suitable facilities to treat, recycle or dispose of municipal solid waste and sewage. USAID helps India address this urgent issue by strengthening the management capability of state and local governments, community groups and NGOs. This is done through a variety of approaches including: (1) the development of environment workbooks and risk assessments which create an accessible information base to prioritize investments; (2) assistance in design of legislation on decentralization of environmental authorities; (3) development of a process leading to women having a greater role in local environmental decision-making and control of resources; and (4) assistance to India's debt market to raise the capital necessary to meet the long-term requirements of new and upgraded environmental infrastructure. USAID assisted Infrastructure Leasing and Financial Services (ILFS) to package an integrated urban environmental infrastructure project for Tirrupur, in the Indian state of Tamil Nadu, the first phase of which consists of a water supply and sewerage treatment system for Tirrupur costing around $85 million. This also helped ILFS to get a line of credit of $200 million from the World Bank to be invested in urban infrastructure.

Special Objective 1: Reduced Transmission of HIV Infection

USAID's HIV/AIDS prevention and control program, located in the southern Indian state of Tamil Nadu, responds to concerns about both health and economic growth. India has been cited as one of the world's most vulnerable growth points for HIV/AIDS. The number of Indians estimated to be HIV positive--between 1.5 and 3 million today--could grow to five million by the end of the decade. The cost to India, both in demand on its already overtaxed health system and in loss of productive workers, could be staggering. USAID is supporting NGO programs known to have impact on the spread of AIDS; these programs emphasize condom use, treatment for sexually transmitted diseases, and changing high-risk behavior. In the last year, 18 NGOs have been funded to work with high-risk groups on HIV/AIDS prevention. A comprehensive research study on the availability and quality of condoms at retail outlets in Tamil Nadu has been completed and follow up action undertaken with private sector manufacturers to improve both the distribution and the quality of condoms. A training module has been designed for training physicians in diagnosis and management of Sexually Transmitted Diseases (STDs) and training of physicians commenced in December 1996. A major study to gather baseline data on knowledge of HIV prevention methods, as well as condom use and care seeking behavior for STDs, was completed in December 1996. The study shows that while populations engaging in high risk behavior are well informed about how to protect themselves from HIV, the adoption of safe behavior, such as condom use, is low. NGOs are receiving training in developing proposals for community-based activities in HIV/AIDS prevention. .

Special Objective 2: Increased Investment in Agribusiness by Private Firms

USAID's Agricultural Commercialization & Enterprise (ACE) program is working to improve the investment environment for private agribusinesses in horticulture and food processing in order to create jobs and increase productivity in agriculture. India currently processes less than one percent of its total agricultural production compared with 10% in Brazil. Its post harvest losses are high--some 30% of total production. The ACE program is designed to demonstrate to India's banking sector the feasibility of lending for agribusiness development and expansion. The ACE program also supports expansion of agribusiness through cost shared technical assistance and information exchange services to private companies and business associations. ACE has already shown results by increasing rural jobs in non-traditional high value crops. For example, the ACE program demonstrated the feasibility of high technology precooling of fruits and vegetables. There are 47 such precooling operations now concentrated in the same geographic area. The development of these operations has stimulated agriculture and related industries leading to increased employment opportunities in the area, especially for the rural poor including women. The ACE program also nurtures Indo-U.S. agribusiness linkages by providing information to, and facilitating trade and investment tours for, the Indian and U.S. agribusiness communities. In September 1996, the first high tech Agribusiness Information Center (AIC) was launched in collaboration with one of India's premier industry associations. The AIC provides access to worldwide agribusiness information on prices, markets and technology.

Special Objective 3: Expansion of Women's Role and Participation in Decision-Making

USAID's Women's Initiative (WIN) increases economic and educational opportunities and reproductive rights of girls and women in India. In a country where over the last seven decades the ratio of females to males has consistently (and unnaturally) declined, there is an urgent need for women to participate in decisions which affect their reproductive and productive lives. WIN provides gender-specific support to improve the impact of USAID/India's program in key strategic objectives of broad-based economic growth, improved child survival and fertility rates, and environmental protection. WIN assists in building a constituency on key women's issues by strengthening a body of Indian organizations which are increasing the access of low-income women to microfinance (savings, credit, and insurance) and/or which are defining and reducing the problem of violence as an obstacle to women's advancement. WIN provides Friends of Women's World Banking assistance to improve business planning of 73 affiliates providing microfinance to women. WIN also provides a network of social science institutes support to develop information systems and a data bank for annual reports on violence against women in India.

Since one-half of primary school age girls are not in school in India's most populous state of Uttar Pradesh, USAID/India is supporting targeted action research conducted by teachers and community members in one district to improve classroom practices and teaching so that girls are more likely to stay in school. Once a teacher training module is developed, it can be adapted statewide and perhaps nationally.

INDIA

FY 1998 PROGRAM SUMMARY

($000)

Encouraging Economic Growth Stabilizing Population Growth and Protecting Human Health Protecting the Environment Building

Democracy

Providing

Humanitar-ian Assist.

Total

USAID Strategic

Objectives/

Special Objectives

1. Increased Mobilization of Capital through Financial Sector Reforms

Dev. Assistance

$9,500

$9,500

2. Reduced Fertility in North India

Dev. Assistance

$21,650

$21,650

3. Increased Child Survival and Improved Nutrition in Selected Areas

Dev. Assistance

P.L. 480 Title II

$2,150

$80,122

$2,150

$80,122

4. Improved Environmental and Financial Sustainability in the Energy Sector

Dev. Assistance

$5,700

$5,700

5. Improved Air and Water Quality at Selected Industrial Sites and Municipalities

Dev. Assistance

$10,500

$10,500

1. Reduced Transmission of HIV Infection

Dev. Assistance

$3,200

$3,200

2. Increased Investment in Agri-business by Private Firms

Dev. Assistance

$0

$0

3. Expansion of Women's Role and Participation in Decision-Making

Dev. Assistance

$3,000

$3,000

Total

Dev. Assistance

P.L. 480 Title II

$12,500

$27,000

$16,200

$0

$0

$80,122

$55,700

$80,122

USAID Mission Director: Linda E. Morse

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Increased Mobilization of Capital through Financial Sector Reforms,

386-S001

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $9,500,000 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2003

Purpose: To increase mobilization of capital through financial sector reforms.

Background: India is struggling to raise the capital it needs for sustained economic growth, new infrastructure and expanded social services for a rapidly increasing population. Tax resources and other government revenues are inadequate. India's fledgling capital market offers great potential for mobilizing resources, foreign and domestic, for new and expanding businesses and for infrastructure investment in water, power and sewage. The extent to which it succeeds will depend, in large part, on its ability to develop more efficient administration, greater transparency and protection for investors. USAID's program offers technical assistance to improve securities market regulations, enforcement and oversight while modernizing the securities trading systems. It also supports the development of a debt market and innovative private-public financing arrangements to fund infrastructure projects such as water supply, sewerage and waste treatment systems. In addition, it promotes expansion of a housing finance system in order to reach lower income families.

USAID Role and Achievements to Date: USAID's economic growth strategy targets activities that have broad impact through policy reform or by support to areas with significant multiplier effects. For example, since USAID helped launch India's over-the-counter exchange in 1993, the exchange has raised more than $76 million for small enterprises, creating many permanent jobs in the process. USAID support also has helped the private housing finance sector grow from a single institution to a network of 78 companies with over 250 branches managing more than $2 billion in credit.

Description: USAID supports growth of the private capital market by helping on both policy and regulatory reform and by introducing new technologies required to protect investors. Last year this market raised more than $8 billion in new capital, including significant sums from foreign--including U.S.--investors. USAID is working with the Securities and Exchange Board of India (SEBI) to increase the transparency and administrative efficiency of its equity and bond markets.

USAID supports the development of a debt market to finance environmental infrastructure projects in India to meet the demand for urban services that cannot come from the public sector. The program provides $125 million in loan guarantees (Housing Guaranty funds), as well as technical assistance and training, to generate commercially viable, urban infrastructure projects. The first project under the program--an initial $85 million portion of a water and municipal sewage system in the state of Tamil Nadu is expected to come to financial close and start implementation in FY 97.

In the second such project, USAID's support was instrumental in completing credit rating (for the first time in India) for the Ahmedabad Municipal Corporation (AMC) to access capital markets through issuing bonds valued at approximately $25 million to be invested in municipal infrastructure projects for the city of Ahmedabad. USAID is assisting AMC in structuring the bond and in the development and packaging of projects for the same.

USAID has supported private housing finance in India since 1979, has assisted in the rapid expansion of registered housing finance companies, and has supported the development of partnerships with community-based financial institutions which provide credit to upgrade homes. The housing finance program promotes the development of a financially sound, private sector, housing finance system. The objective is to expand long-term home finance for median-income and below-median-income households. This program, which draws on $69.6 million in USAID loan guarantees, provides capitalthrough the National Housing Bank (NHB) to housing finance companies, expanding the supply of housing finance to low income households and strengthening the outreach capabilities of community- based financial institutions to provide financial services to informal sector families. The program support ends in September 1997.

Host Country and Other Donors: The Asian Development Bank (ADB) has provided a $250 million loan for development of India's capital markets through policy reforms. This and other multilateral bank loans directly support USAID efforts. USAID assistance to Infrastructure Leasing and Financial Services (ILFS) has leveraged the sanctioning of a line of credit of $200 million by the World Bank to ILFS for investment in infrastructure. The host country contributes well above the total amount of assistance provided by USAID.

Beneficiaries: Beneficiaries include new employees of start-up and expanding companies which create jobs as a result of increased availability of debt and equity capital; Indian and foreign institutional investors (including U.S. investors) who benefit from access to an efficient and transparent capital market; and low-income urban dwellers, including many women, who benefit from improvements in urban sewage and water supply.

Principal Contractors, Grantees, or Agencies: USAID implements this strategic objective through two U.S. contractors and U.S. and local governmental and nongovernmental organizations.

Major Results Indicators:

Baseline Target

Increased amount of new capital 244 (1993/94)1 500 (1998/99)

(equity and debt) raised through the

securities markets (Rs. billion)

Increased foreign indirect 1.6 (1993/94)1 4 (1998/99)

institutional (portfolio) investment

($ billion)

Increased amount of private capital 0 (1994)2 3.75 (1998)

used to finance commercially urban

environmental infrastructure (Rs. billion)

______________________________________________________________

1 Source: Securities & Exchange Board of India discussion paper

2 Source: Regional Housing & Urban Development Office

National Institute of Urban Affairs

Infrastructure Leasing and Financial Services

Housing & Urban Development Corporation

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Reduced Fertility in North India, 386-S002

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $21,650,000 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To reduce the current high level of fertility and improve women's reproductive health by increasing access to, quality of, and demand for a broad range of reproductive health and family planning services and to address related fertility parameters, including the status of women, in India's most populous state, Uttar Pradesh.

Background: The northern Indian, Hindi-speaking states have the country's highest fertility and maternal and child mortality. National and state family planning programs have not provided adequate access to information and quality services to address these problems. The fertility and mortality rates in these states are high, in part, because of inadequate health care services, poorly trained and skilled health providers, and women's low social status (literacy below 30%). This strategic objective includes activities under the Innovations in Family Planning Services (IFPS) project in Uttar Pradesh, the PACT/Child and Reproductive Health (CRH) activity which develops new technologies and approaches in the private commercial sector, the Private Voluntary Organizations for Health - II (PVOH-II) activity which strengthens non-governmental organizations' (NGOs) capacity to provide maternal and child health and family planning services. New activities--Women and Child Health (WACH) and the Women's Initiative (WIN) -- currently under design will further complement this strategic objective.

USAID Role and Achievements to Date: USAID has played an active role in health and family planning activities and has made clear contributions to the substantial drop in fertility and child mortality. However, because India has made only limited use of new technologies and service approaches, progress in recent years has been considerably slower than in many other countries. USAID is now playing a major role in introducing new service approaches and technologies to improve quality of services and increase access. In 1994 and 1995, USAID's program in Uttar Pradesh successfully established and staffed an autonomous agency to implement USAID's largest family planning activity world-wide. It has successfully established support for improving government services and has brought in the participation of a wide range of NGOs to complement and strengthen the overall family planning and reproductive health program. To increase access to quality services, USAID has supported training of district health officials and family planning providers throughout the state; introduced new training methodologies to make the training programs more competency-based and client-oriented; financed training of over 3,000 private doctors in family planning counselling and contraceptive use; trained midwives and other village-level private practitioners and traditional doctors; and provided more than 66 NGOs with a range of health and family planning services. Current service coverage is over 10 million people. To greatly expand information and provide distribution of contraceptives and information, a pilot social marketing activity was launched and is progressing well. Negotiations are being held with the GOI to scale-up the social marketing activity state-wide.

At the same time, USAID financed the National Family Health Survey, one of the largest of its kind in the world, which provided extremely valuable data and analysis on key demographic and health, fertility and family planning practices and is a key to measuring the result of USAID efforts. It was so well received that negotiations are ongoing with the GOI for a follow-on survey.

Description: USAID's strategic focus supports broadened access to quality family planning and reproductive health services through the public sector; engagement and funding of the non-government sector, i.e., private voluntary organizations (PVOs), cooperatives, and employers groups in the provision of community-based family planning and reproductive health services; use of commercial networks to promote, market and sell contraceptive products through commercial outlets, and support for a range of government and non-government efforts to improve the role and status of women. TheIFPS project, working in the state of Uttar Pradesh, will focus efforts in 15 priority districts over the next two years, serving 15 million people. Reaching out through the vast government infrastructure, government doctors and paramedical staff will be trained in contraceptive technology, screening for reproductive tract infections, infection prevention, counseling, client follow-up, and supervision and management of services. In the private sector, successful efforts will be scaled-up through the provision of an additional 25 to 30 grants to PVOs (72 currently being implemented). At present a population of over 10 million people is served either directly or through referral to the government clinics for services. Contraceptive Social Marketing promotes awareness, sales and use of oral contraceptives and condoms. To date over 1.4 million cycles of oral contraceptives and 40 million condoms have been sold. This three-pronged approach through the public, private, and commercial sectors will be supported by a statewide communications campaign, and will lay the foundation for phasing into more districts throughout the state. Another effort (the Child and Reproductive Health component of the PACT project) will support private sector production, distribution and marketing of reproductive health products with sales volumes increasing by 15% annually.

Host Country and Other Donors: The World Bank, United Nations Population Fund (UNFPA), United Nations Children's Fund (UNICEF), and the British Overseas Development Administration (ODA) provide complementary donor support in reproductive health, safe motherhood and child survival. These efforts are primarily channeled through the existing government program. Thus, USAID's support to the private sector is a unique contribution in the Indian context. The GOI contributes substantial resources through its personnel and infrastructure which exists throughout India to provide health and family welfare services to the general public and serves an important need in reaching the large numbers of extremely poor clients that are unable to purchase health services from the private sector.

Beneficiaries: The direct beneficiaries of this strategic objective are the women of child-bearing age (age 15-49) of Uttar Pradesh, totaling approximately 30 million women. Secondary beneficiaries are the children under age five, in particular, female children whose survival will be enhanced by the activities in this program.

Principal Contractors, Grantees, or Agencies: The major grantees are the State Innovations in Family Planning Services Project Agency (SIFPSA) and the Industrial Credit and Investment Corporation of India Limited (ICICI). USAID supported cooperating agencies include: The Johns Hopkins Program for International Education in Reproductive Health, Association for Voluntary Surgical Contraception, Population Communication Services, Center for Development and Population Activities, The Futures Group, Deloitte and Touche, and International Training in Health, University of North Carolina.

Major Results Indicators:

Baseline Accomplished Target

Total Fertility Rate (TFR) for Uttar Pradesh 4.8 (1992) 3.9 (2001)

Contraceptive Use Rate for Uttar Pradesh 20 (1992)1 30 (1997)

Contraceptive Use Rate for 6 Focus Districts 33 (1995) 37 (1997)

Population Served by s (in million) 5 (1995) 15 (1997)

Contraceptive Social Marketing (CSM) Sales

A.

Condoms (million pieces) 21.3 (1995) 14.5 (1996) 29.6 (1997)

B. Pills (,000 cycles) 233 (1995) 272 (1996) 848 (1997)

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Increased Child Survival and Improved Nutrition in Selected Areas,

386-S003

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $2,150,000 DA; $80,122,000 P.L. 480 Title II

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001

Purpose: To reduce high levels of infant and child mortality of poor children and women in north India through integration of P.L. 480 Title II supplementary feeding into health, nutrition, and other services.

Background: One-third of India's population of 900 million people lacks adequate food. Over half of India's young children (73 million) are underweight, and chronic maternal malnutrition is widespread. Infant and child mortality rates are very high. Poor access to health care, high illiteracy rates and poor nutrition and health practices are causative factors for high mortality rates.

USAID Role and Achievements to Date: USAID supports the Government of India (GOI) and non-governmental organization (NGO) efforts to improve child survival in the states where malnutrition, fertility, illiteracy and mortality rates are high. The Cooperative for Assistance and Relief Everywhere (CARE) and the Catholic Relief Services (CRS) have increasingly focused resources in needier northern states, closing down operations in more developed southern states. P.L. 480 Title II commodities provide nutrition and serve as an entry point for provision of services in health education and nutrition. A 1994 USAID impact evaluation of the CARE program found that immunization coverage and nutrition of under-three year old children was better in CARE-assisted village centers. Over the years, USAID assistance has contributed to a steady decline in infant and child mortality from 101 per 1000 in 1978-82 to 79 in 1992-93. The PVOs have developed a sustainable logistic base, allowing the program to move large quantities of food to desperately poor people in remote areas.

Description: The P.L. 480 Title II program and Private Voluntary Organization (PVO) Health II project assist efforts to improve maternal and child nutrition, thereby reducing mortality rates and enhancing the impact of USAID's population and health activities. Under the Quality Control of Health Technologies (QCHT) project, the National Institute of Biologicals is being constructed to expand India's capacity to ensure quality vaccines, blood products and other biologicals. Also, USAID's large family planning project in the state of Uttar Pradesh supports spacing contraception which positively impacts child survival. CARE supports India's Integrated Child Development Services program (India's Head Start Program) and reaches 6.5 million beneficiaries in 92,000 villages. In response to the impact evaluation, CARE developed an integrated nutrition and health program to improve performance. CRS, working through private registered social service societies, reaches 648,620 beneficiaries, including programs managed by Mother Teresa's and the Dalai Lama's organizations.

Host Country and Other Donors: The GOI funds all of the Integrated Child Development Services Program's personnel, infrastructure, in-country transportation (for both CARE and CRS) and storage costs for P.L. 480 Title II commodities. CARE provides technical assistance, training and logistic support. Other donors include the United Nations Children's Fund (UNICEF), World Bank, Swedish International Development Agency, and UN World Food Program (WFP). Japan is a co-donor with USAID for the QCHT.

Beneficiaries: Direct beneficiaries are the more than seven million children under six years of age and pregnant and lactating women and adolescent girls.

Principal Contractors, Grantees and Agencies: USAID implements the P.L. 480 Title II India program through CARE and CRS.

Major Results Indicators:

Baseline Target

Under-five mortality rate U.P. 141 (1992/93)1 U.P. 113 (2000)

declines (No. of under 5 deaths Orissa 131 Orissa 105

per 1000 children) in selected M.P. 130 M.P. 104

states in north India Bihar 128 Bihar 103

Rajasthan 103 Rajasthan 81

Infant mortality rate U.P. 100 (1992/93)1 U.P. 85 (2000)

declines (No. of infant deaths Orissa 112 Orissa 95

per 1000 live births) in selected M.P. 85 M.P. 73

states in north India Bihar 89 Bihar 75

Rajasthan 73 Rajasthan 62

Percent of children less than U.P. 50 (1992/93)1 U.P. 38 (2000)

four years old classified as under-weight M.P. 57 M.P. 38

in selected states in north India (%) Rajasthan 42 Rajasthan 38

__________________________________

1 Source: National Family Health Survey.

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER : Improved Environmental and Financial Sustainability in the Energy Sector,

386-S004

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $5,700,000 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To improve efficiency of energy supply and use in selected industrial sectors; and to increase the use and adoption of clean coal and renewable energy technologies in generation of power.

Background: A major factor affecting both the pace of India's economic growth and the quality of its environment will be its ability to generate and use electricity efficiently. India is unable to cope with current demand for power. The state power utilities are inefficient, often bankrupt, and unable to serve the needs of a country which already has one of the lowest rates of per capita electricity availability, at less than 300 kilowatt hours per person per year. Yet at current rates of economic growth, demand for electricity will grow at more than 30% during the next five years, and, to the extent that it is met, it will be met by the use of India's abundant but high-ash coal with negative environmental implications in India and globally.

USAID Role and Achievements to Date: USAID's technical assistance to the Power Finance Corporation, state electricity boards, and private power companies has helped leverage millions of dollars of loans from the World Bank and the Asian Development Bank. Specifically, technical assistance to the Government of India for development of standardized legal and financial documents; and training in support of regulatory and policy reforms has helped open the way for millions of dollars of potential U.S. investment in private power generation. USAID grants and technical assistance aimed at supporting renewable energy technologies have contributed to an increase in the share of power generation from renewable energy sources from 0.2% of total power generating capacity in March 1994 to over 1% in March 1996. The signing of partnership agreements between leading Indian and U.S. power utilities under the USAID-funded Utility Partnership Program has established a long-term mechanism for transfer of U.S. technology and experience to Indian utilities. USAID assistance also facilitated the signing of the first small hydro power purchase agreement between the Uttar Pradesh State Electricity Board and a private hydro power consortium lead by a U.S. hydro power developer, paving the way for rapid development of 10,000 MV produced by small hydro power plants in India.

Description: USAID has three major activities focused on achieving increased financial and environmental sustainability in the energy sector. Working with major development banks, the Energy Management Consultation and Training (EMCAT) project uses a combination of technical assistance and training to address the critical issues affecting the Indian power sector: identifying and supporting policy reforms related to power sector regulation and restructuring, increasing investments in energy efficiency and demand-side management, and promoting innovative financing of energy efficiency projects. The Program for Acceleration of Commercial Energy Research (PACER) works through a major development financial institution to provide conditional grants for market driven research to develop energy efficient and renewable energy technologies which have potential for near-term commercial success. The Greenhouse Gas Pollution Prevention (GEP) program combines the strengths of Indian industry with the technological prowess of the U.S. to reduce greenhouse gas emissions by facilitating investments in advanced coal combustion technologies and bagasse co-generation, and providing specialized technical assistance for efficiency improvement in existing coal fired power plants.

Host Country and Other Donors: Host country contributions exceed $1 billion through implementing agencies' and industries' cost share. Multilateral development banks are preparing more than $1 billion in new energy efficiency and environmental programs.

Beneficiaries: Independent power producers, national and state level utilities, private power utilities, selected high energy intensity industries, energy audit and service companies, sugar industries, agricultural biomass providers, development financial institutions and consumers -- both urban and rural -- also need access to power for everything from irrigation to lighting.

Principal Contractors, Grantees, or Agencies: U.S. companies and consultants, non-governmental organizations and U.S. Government organizations such as the U.S. Department of Energy.

Major Results Indicators:

Baseline Target

Private power as percentage of power 4.4 (1993/94)1 20 (2001/02)

generating capacity (%)

Percentage increase in kilowatt hour billed to 73 (1992/93)1 77 (2002/03)

KWH produced (%)

Ratio of net CO2 emissions per unit 1.24 (1993/94)2 1.05 (2004/05)

of power generated (volume of emissions/KWH) (kg/KWH)

________________________________________________

1 Source: Center for Monitoring Indian Economy

2 Source: Asian Development Bank

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Improved Air and Water Quality at Selected Industrial Sites and Municipalities,

386-S005

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $10,500,000 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To improve environmental protection through competitive technologies for the industrial and energy sectors and municipalities; and to finance environmental investments through long-term debt instruments to strengthen local governments' management capability.

Background: India, the second fastest growing producer of greenhouse gases in the world, could triple its emissions between 1987 and 2010; its carbon dioxide emissions are expected to double; and ozone-depleting emissions will grow considerably. Of India's 3,119 towns and cities, only eight have full sewage disposal and treatment and only 209 have partial facilities. Environmental conditions are deteriorating rapidly within these cities, and the effects fall disproportionately upon the poor.

USAID Role and Achievements to Date: USAID has initiated programs to identify technology gaps or emerging market opportunities and to enable U.S. companies to supply a wider market for environmentally friendly technologies. India's current market for pollution control goods and services of around $1.7 billion is expected to surge to $4 billion by the turn of the century. To date, USAID has facilitated, through technical assistance and funding support, 11 Indo-U.S. environmental business collaborations. For example, the Indo-U.S. joint venture between Mysore Kirloskar and Snyder General, Texas with $1.8 million in USAID project assistance has already resulted in installed air pollution control equipment valued at $10 million to reduce gaseous and particulate emissions. Another Indo-U.S. joint venture between Agro Pulp Machinery Limited and Enders Process Equipment Corporation, Illinois was set up in 1994. Under this collaboration, a new efficient fluidized bed technology has been successfully introduced and demonstrated. Shreyans Papers Mills in Ludhiana is now treating black liquor effluent to reduce pollution load and recover valuable caustic soda (80%) used as a pulping chemical. With 100 agrobased paper mills in India, the potential market for this technology has been estimated at $400 million. Similarly, DI Filters Systems Private Limited and Donaldson Co. Inc., Minneapolis have collaborated to set up a plant to manufacture air intake filters for gas turbines to reduce air pollution. With the constantly increasing demand for energy in India, the need for such efficient air filters is expected to grow exponentially. USAID also is fostering the evolution of India's debt market to address the enormous requirement for long-term financing for environmental infrastructure. Under USAID's Financial Institutions Reform and Expansion (FIRE) program, the first commercially viable urban water supply and sewerage project has been developed in Tirrupur, in the state of Tamil Nadu, which will provide access to potable drinking water and sewage disposal system to around 250,000 people in the Tirrupur area. USAID assisted environmental workbook and risk assessment studies have helped the city of Ahmedabad in India to identify, prioritize and develop environmental infrastructure projects worth around $175 million, part of which will be financed through the domestic capital market, and another new innovation in the development of a municipal debt market.

Description: USAID has three major activities focused on addressing environmental concerns. The Trade in Environmental Services and Technologies (TEST) activity provides technical assistance to foster increased Indo-U.S. business linkages and project financing to assist Indo-U.S. environmental collaborations. The Greenhouse Gas Pollution Prevention (GEP) program, provides assistance to promote efficient use of bagasse and other biomass fuels to co-generate power for reducing greenhouse gas emissions. GEP also promotes the use of advanced technologies in conventional fossil fuel plants to bring in efficiency improvements and encourage commercial utilization of fly ash. Part of the Financial Institutions Reform and Expansion (FIRE) project helps expand India's capacity tofinance treatment and safe disposal of sewage and municipal waste through a commercially viable system.

Host Country and Other Donors: Indian industries receiving financial assistance through the Industrial Credit and Investment Corporation of India (ICICI) will provide the equivalent of $10.8 million; the Industrial Development Bank of India (IDBI) will lend up to $80 million for bagasse co-generation investments, and the National Thermal Power Corporation (NTPC) will provide $10 million investment in energy efficient equipment as part of the host country's contribution. The Housing and Urban Development Corporation (HUDCO) and Infrastructure Leasing and Financial Services Limited (ILFS) together will mobilize from domestic sources at least an amount equivalent to $125 million for investment in environmental infrastructure projects.

Beneficiaries: The beneficiaries are Indian companies and municipalities, primarily in urban areas, benefiting from clean air and improved access to water and sewerage; Indian technology and service firms; industry and business associations; financial institutions, power utilities, sugar industry, municipalities, and lower-income communities.

Principal Contractors, Grantees, or Agencies: Principal U.S. partners include: Sanders International and Community Consultants Inc.; U.S. Department of Energy PETC. Principal Indian partners include: Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, National Thermal Power Corporation, Housing Urban Development Corporation (HUDCO) and the Infrastructure Leasing and Financial Services (ILFS).

Major Results Indicators:

Baseline Target

Reduction in pollutants in waste water 0 (1993/94)1 10 (1997/98)

at selected industrial sites (% )

Reduction in gaseous emissions and 0 (1993/94)1 * 90 (1997/98)*

suspended particulate matter in air at 0 (1994/95) ** 4 (2000/01)**

selected industrial sites and power plants (%)

Hectares of fly-ash ponds and land fills 0 (1994/95)2 TBD (2002/03)

avoided due to commercial utilization of

ash (hectares)

________________________________________________

* Data is for TEST Project.

** Data is for GEP Project.

1 Source:

Project Reports, National Environmental Engineering Research Institute,

Central/State Pollution Control Boards, Industry.

2 Source: National Thermal Power Corporation, State Electricity Boards,

Captive Power Plants.

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Reduced Transmission of HIV Infection in India, 386-SPO1

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $3,200,000 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To assist the southern state of Tamil Nadu to control the spread of the human immunodeficiency virus (HIV) and the acquired immunodeficiency syndrome (AIDS).

Background: USAID's program in the southern state of Tamil Nadu to prevent and control HIV/AIDS responds to concerns about both health and economic growth. Recent studies have shown that India is potentially one of the countries in the world most vulnerable to a dramatic increase in HIV/AIDS. The number of Indians estimated to be HIV positive--between 1.5 and 3 million today--could grow to five million by the end of the decade. The cost to India, both in demand on its already overtaxed health system and in loss of productive workers, could be staggering. Tamil Nadu is one of the areas of documented high HIV transmission.

USAID Role and Achievements to Date: USAID's AIDS Prevention and Control (APAC) activity in Tamil Nadu supports the participation of nongovernmental organizations (NGOs) in AIDS prevention, capitalizing on their commitment, credibility and access to high-risk groups. USAID has financed the establishment of a new AIDS unit at Voluntary Health Services, Madras, a well respected Indian NGO, as the implementing agency to manage sub-grants to NGOs working with high-risk groups, their spouses, children and communities. In the last year, 18 NGOs have been funded to work with high-risk groups on HIV/AIDS prevention. A comprehensive research study on the availability and quality of condoms at retail outlets in Tamil Nadu has been completed and follow-up action undertaken with private sector manufacturers to improve both the distribution and the quality of condoms. A training module has been designed for training physicians in diagnosis and management of Sexually Transmitted Diseases (STDs) and the training of physicians began in December 1996. A major study to gather baseline data on knowledge of HIV prevention methods, as well as condom use and care seeking behavior for STDs was completed in December 1996. Findings indicate that although 90% of individuals engaging in high risk behavior do know about means of preventing the transmission of HIV/AIDS, adoption of safe behavior lags behind. Only about 37% of high risk populations protect themselves with condoms. NGOs are receiving training in developing proposals for community-based activities in HIV/AIDS prevention. The challenge is to maintain the current high levels of knowledge and to move people from knowledge to adoption of safe behavior.

Description: USAID supports NGOs with both funds and technical assistance to design and implement community-based prevention programs which target high-risk populations, including prostitutes and their clients, and STD patients. NGOs educate target populations, promote condom use, and enhance STD services and counseling.

Host Country and Other Donors: The Government of India's (GOI) World Bank-funded $100 million, seven-year, National AIDS Control Program (NACP) assists the government health system in Indian states to work on HIV/AIDS prevention. The British Overseas Development Administration (ODA) is engaged in developing a country-wide intervention with truck drivers to promote behavior modification and STD treatment. The European Union is supporting NGO activities in several Indian states. Most other donors contribute funds to the GOI's NACP. UNAIDS provides technical assistance to the NACP.

Beneficiaries: Though high-risk sexual activity takes place mostly between female commercial sex workers and their male clients, infection is primarily transmitted to the female partners of clients. Inaddition to commercial sex workers and their clients, women and their children who are family members of clients form 50% of the beneficiaries.

Principal Contractors, Grantees, or Agencies: USAID's worldwide AIDSCAP Project provides technical support to Voluntary Health Services, Madras, which is the nodal voluntary agency entrusted with APAC activity implementation.

Major Results Indicators:

Baseline Target

Knowledge of at least two 90% 90% increase (2001/2002)*

protective measures against HIV

transmission amongst those

engaging in high-risk behavior.

Use of condoms among high- 37% 62% (2001/2002)*

risk groups.

Proportion of the high-risk 52% 77% (2001/2002)*

populations seeking care from qualified

medical practiioners for symptomatic STDs

Number of APAC assisted NGOs involved 0 (1995) 100 (2001/2001)*

in HIV/AIDS prevention activities.

______________________________________

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER : Increased Investment in Agribusiness by Private Firms, 386-SPO2

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $0 DA

INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1998

Purpose: The purpose of the Agricultural Commercialization and Enterprise (ACE) project is to reduce post harvest losses and accelerate competitive agribusiness development through increased investment flows and Indo-U.S. business linkages.

Background: Agriculture contributes over 30% of India's gross domestic product (GDP) and, directly or indirectly, provides a living to almost 700 million people. Less than 1% of India's horticultural production is processed in India, compared to 70% in Brazil and the United States. Inadequate infrastructure causes an approximate 30% post harvest loss.

USAID Role & Achievements to Date: USAID, through its Agricultural Commercialization and Enterprise (ACE) program, assists competitive and pioneering agribusiness ventures producing high value horticultural produce and agroprocessing that expand rural employment (including jobs for women) and incomes. Among the 22 commercial ventures supported by ACE, four for fruits and vegetable pre-cooling in the Nasik region of Maharashtra state have led to an additional 47 similar investments in Nasik alone.

Convinced by this success, formerly reticent financial intermediaries now invest nine dollars for every dollar financed by the ACE project in agribusiness ventures. USAID has also actively facilitated Indo-US agribusiness linkages through arranging training programs in leading U.S. universities (e.g., the University of California, Davis) and encouraging participation of Indian agribusiness leaders in trade and investment shows in the U.S. These business nurturing activities have improved India's perception of U.S. exporters and manufacturers of agribusiness equipment. For example, ACE facilitated an Indian delegation's participation in Chicago's 1995 Megashow which resulted in a new joint venture in cooling equipment which will open South Asia's markets to new technology from a mid-sized U.S. company. In September 1996, the ACE program successfully launched India's first, state of the art Agribusiness Information Center (AIC) in collaboration with the Federation of Indian Chambers of Commerce and Industry (FICCI), India's premier industry association. In September 1996, the ACE project provided an opportunity to American biotech companies to meet with Indian firms interested in acquiring new technology at a Biotech Business Forum. As a direct result, one of the participating American companies has sent a team to negotiate and appoint agents and dealers for their technology in India.

Description: USAID through the ACE program and its partner the Industrial Credit and Investment Corporation of India (ICICI) lends seed capital for pioneering horticultural and agribusiness ventures in order to demonstrate the feasibility of lending to agribusiness. The ACE program also provides technical assistance and training to individual firms and industry associations and nurtures Indo-US agribusiness linkages as a mechanism for technology transfer. The Mission plans to extend this activity through additional funding anticipated from the Agency's new economic growth plus-up initiative.

Host Country and Other Donors: In response to ACE effectiveness, the Government of India transferred over $20 million in local currency to ICICI to finance agribusiness operations. Additionally, after the creditworthiness of agribusiness lending was demonstrated, ICICI has invested over $50 million from its own resources in similar agribusiness projects. Other donors such as the EuropeanUnion, UNDP, FAO and the World Bank have used USAID experience in plans for replicating these activities. As an example, the World Bank is designing a similar $300 million project for the state of Uttar Pradesh.

Beneficiaries: Farmers, rural women, young entrepreneurs, financial institutions and business associations benefit from the establishment and expansion of agribusiness.

Principal Contractors, Grantees, or Agencies: USAID implements activities through Chemonics International, a U.S. contractor; the International Executive Service Corps (IESC), a U.S. private voluntary organization; ICICI, the leading Indian private development bank; FICCI, India's premier industry association; and Winrock International, a U.S. contractor that implements the Farmer-to-Farmer program in India.

Major Results Indicators:

Baseline Target

Increase in total investments 0 (1991/92)1 60 (1997/98)

in ACE-funded agribusiness projects ($ million)

Increase in ICICI lending to the agri- 0 (1991/92)1 200 (1997/98)

business sector ($ million)

Increase in value of horticultural 155 (1991/92)2 380 (1997/98)

exports ($ million)

________________________________________________

1 Source: Industrial Credit and Investment Corporation of India, Chemonics International

2 Source: Agricultural Products Export Development Authority (APEDA)

ACTIVITY DATA SHEET

PROGRAM: INDIA

TITLE AND NUMBER: Expansion of Women's Role and Participation in Decision-Making, 386-SPO3

STATUS: Continuing

PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1998: $3,000,000 DA

INITIAL OBLIGATION: FY 1996; ESTIMATED COMPLETION DATE: FY 2001

Purpose: To expand women's role and participation in decision-making through activities addressing constraints in the areas of microfinance, girls' school participation, violence against women, management of the community environment and women's control over her reproductive and childrens' health.

Background: Women are the most disadvantaged members of the Indian population and comprise the largest portion of the population living in absolute poverty. The low status is reflected in indicators such as low literacy rate, a significant gender gap in primary education, high prevalence of a number of forms of violence against women, and lack of access to financial resources. Worsening environmental conditions and the absence of basic infrastructure in poor communities deprive women of prospects for healthy, dignified lives as productive members of society. Perhaps the most telling is the figure for "missing women" as reflected in excess female mortality (when compared to male mortality), especially high maternal mortality rates and the declining sex ratio (927 per 1000 males as per the 1991 census). Between 1981 and 1991 more than four million girl children joined the ranks of "missing women." Approximately 1.2 million of them disappeared either through selective abortion following sex-determination in pregnancy or because of inadequate attention after birth.

USAID Role and Achievements to Date: All the activities supported by the Women's Initiative (WIN), which began in FY 1996, address aspects of women's issues not supported by any other donor. It is envisioned that considerable progress will be made in USAID supported programs being implemented by the International Center for Research on Women and its subgrantee, the Centre for Development and Population Activities in partnership with Indian organizations. During the first phase of WIN, more than 20 non-governmental organizations (NGOs) providing financial services to low-income women will be trained in business planning by USAID's local partner, Friends of Women's World Banking (FWWB). Training materials in several Indian languages will be made available to these and other grassroots institutions serving low-income women, and the institutional capacity of FWWB will be strengthened. A systematic methodology in collection and analysis of secondary data and indicators measuring the incidence, prevalence and costs of violence against women will be piloted in some states in India by local institutions, and plans to refine this pilot undertaking in order to replicate at a national level will be underway.

USAID support through the Global Girl's and Women's Education Initiative will result in development of new instructional methods in gender-sensitive classroom interaction of teachers in primary schools of one block in Uttar Pradesh. Baseline data will be collected by core team of local teachers using classroom observations of both qualitative and quantitative interactions and interviews with teachers, parents and community members.

Description: After an extensive customer survey of women's NGOs, grass roots organizations, research institutions, government offices, media groups and other donors, USAID decided to provide support for: (a) developing, with the participation of a prominent teacher's association, a teacher training module that eliminates gender-biases in classroom practices and increases girl's school enrollment and retention in one district in the Indian state of Uttar Pradesh; (b) upgrading the business planning skills of NGOs to increase outreach of financial services to low-income women; and (c) expanding informed research and advocacy by Indian organizations on and against violence against women by development of nationwide data base for publication of annual status reports. Support in these areas will strengtheninterventions in the areas of increased political participation and awareness of legal rights of women.

WIN also seeks to strengthen alliances of women's organizations through advocacy workshops and dissemination of research results and models. Through these alliances, there will be positive synergistic impact on the health and family planning and urban environmental management activities supported by USAID.

Host Country and Other Donors: WIN contributes to many significant Indian initiatives and donor programs. In the primary education sector, the World Bank is providing over $700 million to improve coverage and quality of primary education, and several UN agencies have coordinated to provide assistance for teacher training and community participation and management of schools. The European Union and the British Overseas Development Administration (ODA) also have significant primary education programs in Madhya Pradesh and Andhra Pradesh, respectively. The USAID activity complements these comprehensive programs by focusing specifically on teacher training through skills development for teachers that are intended to increase teachers' abilities to address girls' specific learning needs, improve school and classroom learning environments for girls so they stay in school.

Although violence against females is a widely recognized and serious problem in India, most donors have assisted support services or legal awareness programs rather than building an information base. USAID is the first donor to work with Indian organizations to establish an objective and national data bank, through systematic analysis and collection of data on violence against women.

The UN, World Bank, Swiss, Dutch and Canadians have all supported credit and enterprize programs for women. However, most of these programs have focused on women's self-help group formation and development of home-based enterprises. WIN focuses instead on upgrading the technical and managerial capabilities of alternative financial organizations which, by operating on a sound, sustainable basis, will increase the quality and outreach of the financial services they provide to women.

Beneficiaries: Girls, women and local institutions of India in areas assisted by WIN.

Principal Contractors, Grantees or Agencies: Center for International Education, University of Massachusetts International Center for Research on Women and subgrantee, Centre for Development and Population Activities (CEDPA), Friends of Women's World Banking (FWWB) and other local institutions.

Major Results Indicators:

* Increased enrollment and retention of girls in primary Baseline (1996/97) and target figures schools in one district in UP (% increase) (2000/2001) will be developed for

these indicators in consultation with

* Increased number of women clients receiving G/WID, G/EG/MD and ICRW/CEDPA and financial services from NGOs trained in business key Indian partner institutions.

planning (% increase)

* Increased number of institutions reporting regularly on

violence against women

* Increased number of local institutions and their constituencies

conducting methodological research on and informed

advocacy against violence against women (% increase)

* Publication of an annual report on violence against women.

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