India’s Ministry of External Affairs (MEA) has formally requested the U.S. Embassy to urgently furnish details of expenditure incurred on all United States Agency for International Development (USAID) assisted or funded projects in India over the past decade. The request follows recent reports and controversies regarding USAID’s activities in the country.
Formal Inquiry by India
Responding to a query from Communist Party of India (Marxist) Rajya Sabha member John Brittas, the MEA confirmed in Parliament that the Indian government has sought comprehensive information on NGOs involved in implementing USAID-backed initiatives. While some open-source data on USAID funding is available, the MEA emphasized that an official response from the U.S. government is necessary.
The ministry also noted that certain details regarding USAID beneficiaries have been withheld by the U.S. administration, citing American legal provisions allowing “exceptional redactions.” These redactions reportedly pertain to concerns over the safety of implementing partners and program beneficiaries, as well as considerations of U.S. national interest.
Allegations of Foreign Interference
The controversy surrounding USAID funding escalated after allegations emerged that funds were used to influence voter turnout in Indian elections. The issue gained momentum when the Elon Musk-led U.S. Department of Government Efficiency (DOGE) announced budget cuts for USAID on February 16, including a contentious $21 million allegedly allocated for voter mobilization efforts in India.
The situation intensified when former U.S. President Donald Trump claimed that his predecessor, Joe Biden, had sanctioned these funds to influence India’s electoral process. In response, MEA spokesperson Randhir Jaiswal termed Trump’s claims “very deeply troubling” and raised concerns about foreign interference in India’s internal affairs. External Affairs Minister S. Jaishankar further stated that an investigation was underway, promising that the “facts will come out soon.”
USAID’s Role and Funding in India
USAID has played a significant role in India, particularly in health and population projects. Over the past two decades, USAID has focused on strengthening systems to counter China’s influence in the Indo-Pacific region. In 2022, USAID ranked fourth among Official Development Assistance (ODA) providers to India, contributing $228 million, behind only Japan, the European Union, and Germany.
Since 2001, USAID has disbursed a total of $2.8 billion in ODA to India. In 2024, the agency allocated $151 million, with $80 million directed toward health and population programs. Notably, $42.99 million was used for basic health services, and $16 million was allocated for COVID-19 relief efforts.
Implications of Trump’s Foreign Aid Review
In January 2024, U.S. President Donald Trump signed an Executive Order initiating a comprehensive review of all U.S. foreign aid programs. The subsequent review by the Department of Government Efficiency (DOGE) resulted in the cancellation of 83 percent of USAID programs, eliminating approximately 5,200 contracts. Around 1,000 programs will continue under the U.S. State Department’s management.
During a speech in Miami in February, Trump questioned the necessity of spending $21 million on voter turnout initiatives in India, implying that the funds were intended to influence election outcomes. This statement added to the growing concerns in India regarding potential foreign interference.
Amid these developments, multiple Indian ministries and agencies are investigating USAID’s funding and its potential implications. The MEA stated that updates would be provided as more clarity emerges.
Manbilas Singh is a talented writer and journalist who focuses on the finer details in every story and values integrity above everything. A self-proclaimed sleuth, he strives to expose the fine print behind seemingly mundane activities and aims to uncover the truth that is hidden from the general public. In his time away from work, he is a music aficionado and a nerd who revels in video & board games, books and Formula 1.
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