The United States Agency for International Development (USAID) is ceasing its operations in India, as announced on Monday by a close adviser to the US President and head of the Department of Government Efficiency (DOGE), Elon Musk. The decision, approved by the US President, is expected to have minimal impact on India due to the country's strong economic growth.
USAID's presence in India spans almost 70 years, during which the country has undergone a remarkable transformation. Once a major recipient of aid, India has emerged as a key partner for the US, collaborating on initiatives with global impact, particularly in the Indo-Pacific region. This shift reflects India's growing economic strength and its increasing role in international development efforts.
India's participation in the Quadrilateral Security Dialogue (Quad), alongside the US, Japan, and Australia, highlights this partnership. The Quad aims to foster development and counter China's influence in the Indo-Pacific through collaborative initiatives.
The planned USAID funding for India in the current fiscal year was approximately $140 million. This represents a small fraction of India's overall budget, which exceeds $600 billion. The funding allocated to USAID has also been steadily decreasing in recent years, further demonstrating India's economic progress.
Key areas of USAID support in India included government and civil society, health, environment, and social infrastructure. The US government's Foreign Assistance website detailed these allocations for the 2024 fiscal year.
Despite the program's closure, the US continues to view India as a crucial partner in its Indo-Pacific Strategy, which aims to promote a free, open, connected, prosperous, secure, and resilient region. India is seen as essential in achieving US goals related to health, climate resilience, and sustainable economic growth.
A document outlining the US government's development strategy for India, drafted under the current administration, emphasizes collaboration with various actors, including civil society, government, and the private sector. It highlights the intention to achieve systemic change and phase out assistance when appropriate. However, some priorities outlined in the document, such as strengthening democratic institutions and supporting human rights, could be interpreted as touching on India's internal matters.
Examples of successful collaborations between India and USAID include the International Solar Alliance and the Coalition for Disaster Resilience Infrastructure. Additionally, both countries have worked together to provide training in agriculture technology to officials from Africa and Asia.
Following the announcement of the closure, all USAID-related information has been removed from the US Embassy in New Delhi's website and other official platforms. This move underscores the finality of the decision and the transition in the US-India relationship.
