India to Face Minimal Impact If USAID Shuts Down: Report
New York, Feb 4: India is expected to face minimal impact if the Trump administration decides to shut down the USAID (United States Agency for International Development) programme, according to reports.
Elon Musk, head of the Department of Government Efficiency (DOGE) and a close adviser to President Donald Trump, announced on Monday that the USAID programme will be shut down. However, India's booming economic growth and its transition from an aid recipient to a global development partner will cushion the impact.
USAID has been active in India for over 70 years, but India has significantly reduced its dependency on foreign aid. It now partners with other countries, particularly in the Indo-Pacific region, for economic development under the Quad alliance—comprising India, the US, Japan, and Australia. This initiative aims to counter China’s influence through more transparent assistance programs, unlike Beijing’s predatory policies.
For the current fiscal year, India was set to receive $140 million in USAID funding, a small fraction of its overall $600 billion national budget. Over the years, USAID's financial contributions to India have been gradually reduced due to the country's rapid economic progress.
In 2024, USAID allocations included:
- $6.8 million for governance and civil society
- $55 million for healthcare
- $18 million for environmental initiatives
- $7.8 million for social infrastructure
Despite USAID's withdrawal, India remains a key partner in the US Indo-Pacific Strategy, which focuses on fostering a free, open, connected, prosperous, and secure region. The Country Development Cooperation Strategy (CDCS) also highlights India's crucial role in climate resilience, economic growth, and governance reforms.
Under USAID’s collaboration, India has co-sponsored global initiatives like the International Solar Alliance and Coalition for Disaster Resilient Infrastructure. India and USAID have also jointly trained 1,200 officials from Africa and Asia on agricultural technology.
Interestingly, all references to USAID have been removed from the US Embassy’s New Delhi website, further confirming the impending closure of the programme.