Copyright infringement not intended 

Context:

The Trump administration's January 2025 Executive Order halted foreign aid, including USAID programs in India, as part of a broader fiscal cut amid rising national debt.

News in Detail

The United States Agency for International Development (USAID) has been a significant contributor to India's development since 2001, providing $2.8 billion in Official Development Assistance, with the largest aid packages coming in 2022 ($228 million) and 2023 ($175 million). In 2024, $151 million had been disbursed by December 19.

USAID's support has evolved from initial food aid to include various essential sectors, channeling funds through the Indian government and Non-Governmental Organizations (NGOs).

The decision by the Trump administration to discontinue foreign aid and significantly reduce USAID's operations threatens to disrupt numerous ongoing projects in India.

Key Sectors of USAID Support in India

Health and Population

This sector has consistently received the largest share of USAID funding, with programs focusing on:

• Basic Health Programs: USAID allocates significant funds to basic health programs, including substantial support for COVID-19 control. In 2022, $140.7 million went to basic health, with $120 million specifically for COVID-19.
• Maternal and Child Health and Family Planning: USAID invests in improving maternal and child health, allocating $20.94 million in 2024 and $25.09 million in 2022 to these areas.
• HIV/AIDS and Tuberculosis (TB) Control: USAID, in partnership with PEPFAR (President’s Emergency Plan for AIDS Relief), is a major player in combating HIV/AIDS and TB in India. For example, the "Breaking the Barriers" program, implemented through the Karnataka Health Promotion Trust (KHPT), received $7 million over 2022-23 to increase TB awareness in vulnerable regions.
• Polio Eradication: USAID has historically supported polio eradication programs in India.

Environmental Protection

USAID supports environmental sustainability through investments in:

• Clean Air and Water Initiatives to improve air and water quality received funding of about $17.12 million in 2024.
• Sustainable Development and Climate Resilience projects promoting sustainable development and enhancing India's resilience to climate change.
• Water, Sanitation, and Hygiene (WASH) initiatives like the Swachh Bharat Abhiyan (Clean India Mission), contributing to household toilet construction and open defecation-free communities.

Economic and Institutional Development

USAID strengthens India's public health systems, supports research collaborations, and builds the capacity of NGOs. A significant increase in USAID's economic support fund to India occurred after the COVID-19 pandemic, reaching $148 million in 2022 and $81 million in 2023.

Other Sectors

USAID supports the development of secure 5G Open Radio Access Network (O-RAN) to enhance India's telecom security and digital sovereignty.

It supports farmers by promoting improved technologies and management practices to increase yields and income.

It supports literacy campaigns like Padhe Bharat Badhe Bharat and provides training to teachers to improve teaching skills.

It contributes to disaster management programs in India.

Consequences of Funding Reductions

• Health Sector Crisis: Programs addressing TB, HIV/AIDS, and maternal health face discontinuation.
• Increased Disease Burden: Potential rise in infections and mortality rates due to loss of funding
• NGO Funding Shortfall: Organizations like Karnataka Health Promotion Trust face operational uncertainty.
• Strategic Influence Shift: Withdrawal of US aid could create opportunities for other nations to expand influence in South Asia.

Must Read Articles:

USAID ALIGN AID WITH U.S. INTEREST

FREEZE ON USAID AFFECT THE WORLD

Source:

INDIAN EXPRESS

https://t.me/+hJqMV1O0se03Njk9