USAID vs. India: How Trump's crackdown alters Washington-Delhi dynamics

Russia Today

03-03-2025

The Department of Government Efficiency (DOGE) established by US President Donald Trump under tech billionaire Elon Musk, intended to downsize the federal government, reduce wasteful expenditure, and stop the misuse of funds and corruption, has created huge waves in the US. This affects the bureaucracy at large, elements of which at the higher echelons are seen as part of the 'deep state' that Trump is battling.
The activities of USAID have also come under the scanner by DOGE, and their exposure has touched India also, with the disclosure that $21 million allocated to India in 2024 for promoting higher voter turn-out in elections has been blocked. The stated purpose of these funds, to be channeled via the Consortium for Elections and Political Process Strengthening (CEPPS), a group based in Washington, D.C., is baffling because the turn out in Indian elections is already very high. It was 65.79% in the 2024 general election – much higher than in US elections.
Trump, as is his wont, has latched on to this in his characteristic discursive style and expressed bemusement that such an allocation was made. He has commented several times on this in public and in the process has created confusion by talking of $21 million – the DOGE figure –initially and later mentioning $18 million, suggesting that kickbacks may be involved, mixing up the potential beneficiaries, saying that the purpose was to get 'someone else elected,' and asking the basic question why India would need these funds at all.
It could be speculated that the funds might have been destined for opposition elements to bolster their chances in specific constituencies by promoting a higher voter turnout opposed to the ruling Bharatiya Janata Party (BJP). No proof of this is available as the money has not been disbursed.
The Indian opposition and its sympathizers in the media have tried to obfuscate the issue by claiming that the purported funds – not $21 million but $29 million – were intended for Bangladesh to 'strengthen its political landscape,' and that a perusal of available records would support this. The problem in taking this line is that DOGE is speaking of funds not disbursed to India whereas the funds to Bangladesh have been.
Be that as it may, the reference to $29 million to be spent on strengthening the political landscape in Bangladesh – a code word for political interference in the country, which saw a regime change last year – strengthens strong suspicions in India that the US had a hand in the ouster of Sheikh Hasina's from power in Bangladesh, which struck a blow to New Delhi's strategic interests in that country.
The obvious political nature of this $21 million allocation has created controversy in India, with the ruling party pointing the finger at opposition elements as the intended beneficiaries, and opposition groups seeking a proper investigation of the flow of such funds into India by the government.
The US has previously funded development projects in India. In the last decade, India has received about $1.5 billion as such aid. According to the BJP's data, from 2004-2013, when the previous coalition was in power, the government received $204.28 million from USAID while NGOs received $2.11 billion. Under the present coalition the government has received $1.51 million (through 2015), while NGO funding has risen to $2.57 billion. Government funding ceased after 2015, but NGOs such as Catholic Relief Services received $218 million, CARE International $218 million, and the Organised Crime and Corruption Reporting Project, which has published reports targeting the Modi government, has received $47 million.
USAID has backed programs such as Internews, which trained Indian journalists with the objective of shaping media narratives considered unfavorable to the Indian government. The US embassy in India has organized programs for Indian journalists on countering disinformation, becoming dependable fact-checkers and preventing fake news in their respective news rooms, besides strengthening positive narratives to maintain peace and stability in the region. USAID and the US embassy funding programs to tutor the media in India are clearly objectionable as they constitute interference in its internal affairs.
That USAID has engaged in activities that go well beyond development aid was always suspected but these concerns have not been publicly expressed at the official level. It is standard practice for entities such as USAID to have genuine aid programs, which give its operatives access to government departments and at the field level, and this facilitates collection of information and intelligence operations. With relations with the US steadily on the upswing since 2005, India has chosen to concentrate on the positives of ties and play down concerns about some negative features of US policy towards India.
USAID has not been the focus of Indian concerns. It is the activities of US foundations that have raised concerns, be it the Ford Foundation (whose activities the government has tried to control), the Open Society Foundation, the Omidyar Foundation, and so on.
The Open Society Foundation in particular, founded by magnate George Soros, has been blatantly active politically against Prime Minister Modi himself, and on the issue of democracy in India. Its link with USAID has now come out into the open. The present government has in recent years greatly tightened up on foreign funding of Indian NGOs when evidence grew that they were engaging in political and social activities against the country's interest, and also mobilizing local populations against some development projects.
A whole eco-system in the West spanning governments, parliaments, media, think tanks, academia, journals, democracy and religious promotion organizations, and so on, have been targeting India ever since Modi and the BJP came to power in 2014.
Before the 2024 Lok Sabha election the anti-Modi and anti-BJP campaign intensified. Established publications such as the New York Times, the Washington Post, the Financial Times, the Wall Street Journal, Foreign Affairs, the Economist, Le Monde, Deutsche Welle, etc. uniformly promoted a negative narrative about the state of democracy and minority issues in India, some even calling openly for voting against Modi for re-election. Some observers in India felt that this was a concerted campaign that also involved the deep state in these countries.
It is not a coincidence that these attacks on Modi and the BJP government in western circles were closely aligned with the political attacks by India's opposition. Some prominent Indian opposition leaders had actually sought US interference in India's internal affairs to assist in saving its democracy. The incessant attack by an opposition leader on the links between a top industry figure in India with the Indian prime minister was echoed by George Soros at Davos as far back as January 2020.
The uncovering of USAID's activities worldwide by the Trump administration and the decision to stop its operations have been explosive in nature. It has demolished a key instrument in the hands of the US establishment to further its influence abroad in overt and covert ways. Many have long suspected that the CIA uses USAID for furthering its agenda. Whether true or not, some of the revelations of DOGE about USAID's activities substantiate this suspicion. The dynamics behind this is internal US politics but the fall-out is international.
Indian External Affairs Minister S. Jaishankar has reacted in a relative low key to the exposure of USAID activities in India, stating that USAID was allowed into India 'in good faith,' and now suggestions are coming from America itself that it conducted some activities 'in bad faith,' which is worrisome. The government is looking into this and the facts will come out, Jaishankar asserted.
With the cleaning up operations that Trump is conducting against the deep state in the US that includes the CIA and the FBI, and the short shrift he is giving to the liberal media, not to mention his lack of interest in using the human rights weapon against other countries, India's problems with the US under Trump will shift to economic issues. Washington will want to address high Indian tariffs, and reduce the US trade deficit with India by imposing matching tariffs and pressuring India to give more market access to US products, buy more US oil and gas, and acquire more US defense equipment. His anti-woke agenda will be helpful in curtailing trends towards woke-ism in India.
Under the Joe Biden administration India-US relations improved palpably. However, the progressive wing of the Democratic Party in tandem with the liberal press pressured India on democracy and human rights issues, to the point of frequently commenting on India's internal affairs and causing irritation in New Delhi. With Trump, the positive trajectory of relations will continue but contentiousness will shift to trade issues and 'deal making' pressures from the US.