Why in news
The Trump administration’s decision to freeze foreign aid, including support through USAID, is a significant move impacting global humanitarian efforts.
This follows a pattern of withdrawing from international agreements, such as the WHO and the Paris Agreement, signaling a more isolationist approach.
What is the US Agency for International Development?
USAID is the primary US agency for global humanitarian and development aid.
In 2024, USAID was allocated USD 44.2 billion, just 0.4% of the total US federal budget, but accounted for 42% of all humanitarian aid tracked by the United Nations.
USAID funds healthcare, food aid, disaster relief, and policy advocacy worldwide.
Top aid recipients Include Ukraine, Ethiopia, Jordan, Somalia, and Afghanistan.
India's association with USAID began in 1951 with the India Emergency Food Aid Act, evolving over decades from food aid to infrastructure, capacity building, and economic reforms.
The agency has been supporting education, immunization, polio eradication, and HIV /Tuberculosis (TB) prevention.
In the last decade, India is said to have received around USD 1.5 billion from USAID (about 0.2 % to 0.4 % of USAID’s total global funding).
What are the Implications for India?
India has positioned itself as a bridge between the Global North and the Global South, benefiting from its rising status within the G20.
If the US reduces its role in G20, China and Russia could expand their influence, potentially shifting global economic dynamics and weakening India's position amid China's rising power.
Healthcare: Although direct financial aid to India has decreased, USAID contributions exceeded USD 50 million in 2024.
A permanent funding cut could impact India's vaccination programs, infectious disease control, and medical infrastructure.
India may need to redirect domestic funds to sustain health, environment, and governance projects.
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