How Trump's USAID crackdown will impact India & why BJP is targeting Left over it

The US has provided development and humanitarian assistance to India since 1951

The US Agency for International Development (USAID) on Monday directed all organisations carrying out its funded projects in India to halt operations amid reports that the Trump administration is reportedly moving to bring the agency under State Department control.

The clampdown on USAID followed an executive order by President Donald Trump to review foreign assistance and align it with the new administration's policies.

"The recipient shall not resume work under this agreement until notification has been received in writing from the Agreement Officer (USAID) that this award suspension has been cancelled," the directive states, according to a Times Of India report.

The agency helps other countries primarily by funding non-governmental organisations (NGOs), foreign governments, international organisations, or other US agencies, often for specific programs to alleviate poverty, providing education and healthcare, among other things.

USAID’s role in India

The US has provided development and humanitarian assistance to India since 1951. According to the USAID website, till January 2021, the agency was supporting mother and child health initiatives in six states. A report by IANS stated that during the current fiscal year, India was to receive $140 (Rs 14 crore) million through USAID while the country's overall budget is over $600 billion (Rs 6,000 crore). The agency also funds projects to improve agricultural productivity and food security in rural India.

USAID has reportedly partnered with the Indian government to support the National Tuberculosis Elimination Program (NTEP), aiming to eliminate TB in India by 2025. It introduced new technologies, including the GeneXpert rapid diagnostic tool.

According to Indian Express, the USAID aid helped the establishment of eight agricultural universities, the first Indian Institute of Technology, and 14 regional engineering colleges.

USAID supported the government's Swachh Bharat Abhiyan (Clean India Mission) launched in 2014 and helped over 3 lakh people with access to household toilets, ensuring 25,000 communities are open defecation free (ODF), a report by NDTV stated.

How will it impact India?

The absence of USAID funding could force NGOs to lay off staff, pause community programmes, or shut them down. India may also need to seek alternative funding sources, either from domestic resources or international partners.

BJP on USAID

BJP’s Amit Malviya questioned the “silence” of the Left parties in India over the same.

The deafening silence of the lunatic Left in India after the clampdown on USAID in the United States is telling. Several of these characters, who have long lived off such handouts, may now have to sell their pinstripe suits just to buy groceries
Amit Malviya (@amitmalviya) February 3, 2025

“The deafening silence of the lunatic Left in India after the clampdown on USAID in the United States is telling. Several of these characters, who have long lived off such handouts, may now have to sell their pinstripe suits just to buy groceries…,” Malviya posted on X.

Think tanks such as the Centre for Policy Research (CPR) and some NGOs that are allegedly funded by Leftist liberal bodies have also received the USAID aid, as per reports. The think tank has reportedly collaborated with USAID in various initiatives such as partnership for Advance Clean Energy (PACE) and Urban Water, Sanitation and Hygiene (WASH) Alliance. However, last year, the ministry of home affairs cancelled the foreign contribution registration act (FCRA) licence of CPR for alleged violation of the foreign funding law.