Trump criticises USAID funding for India, sparks diplomatic tensions

US President Donald Trump has criticised the United States Agency for International Development (USAID) for allegedly allocating funds to interfere in India's electoral process, questioning why American taxpayers' money was being sent to the country.

Speaking at the Conservative Political Action Conference (CPAC) in Washington on Sunday, President Trump alleged that India already benefits from high tariffs on American goods and does not require financial assistance for its elections.

"Eighteen million dollars for helping India with its elections. Why the hell? Why don't we just go to old paper ballots and let them help us with our elections, right? Voter ID. Wouldn't that be nice? We're giving money to India for elections. They don't need money," Trump remarked.

The figure quoted by Trump could not be independently verified. A prior report from the Elon Musk-led Department of Government Efficiency (DOGE) suggested that $21 million had been allocated for "voter turnout" in India.

"They take advantage of us pretty good. One of the highest tariffed nations in the world. We try and sell something, they have a 200 per cent tariff. And then we're giving them a lot of money to help them with their election," he continued.

India responds to Trump's allegations

India's External Affairs Minister S Jaishankar addressed the concerns raised by Trump, stating that the government was looking into the matter.

"Some information has been put out there by the Trump administration people, and obviously, that is concerning. I think, as a government, we're looking into it. My sense is that the facts will come out. USAID was allowed here in good faith, to do good faith activities; now, suggestions are being laid out from America that there are activities which are in bad faith. It's worrisome, and if there's something to it, then the country should know who the people are involved in it," Jaishankar said.

Meanwhile, the opposition Congress party has demanded a white paper on all foreign aid received by India from developmental agencies. Congress has also called for legal action against those propagating what it terms "baseless allegations" of foreign interference in Indian democracy.

Congress spokesperson Pawan Khera countered Trump's claim, stating, "More Indian news media outlets have fact-checked the claim by BJP and Modi government's minister as untrue. Funds went to Bangladesh, not India; although India received USAID funds, it was not for increasing voter turnout."

BJP dismisses congress's defence

BJP leader Ajay Alok dismissed Congress's statements as "baseless," asserting that the Modi government has significantly curtailed foreign aid flows.

"We have already shown that the government got $2,119 million between 2004-14 and just $1.5 million between 2014-25. We are shutting down these things. The Indian government is now acting, the US government has issued a list of who has got the money from where... this is part of a deep state. The Bharat Jodo Yatra was also being funded from this money," Alok claimed.

With both the Indian and Bangladeshi governments yet to issue a formal statement on the matter, the controversy is likely to continue, further complicating diplomatic relations between India and the United States ahead of key elections in both nations.