US President Donald Trump on Wednesday defended the Elon Musk-led Department of Government Efficiency's (DOGE) decision to cancel a $21 million grant intended to increase voter turnout in India, questioning the necessity of such financial assistance given the country's economic growth and high tariffs.
"Why are we giving $21 million to India? They have a lot more money. They are one of the highest taxing countries in the world in terms of us; we can hardly get in there because their tariffs are so high. I have a lot of respect for India and their Prime Minister, but giving $21 million for voter turnout?" Trump remarked while signing executive orders at his Mar-a-Lago residence.
The DOGE, established under the Trump administration to oversee and reduce government spending, announced on Sunday that it had cut $723 million in foreign aid funding as part of broader budgetary reform.
The reductions included the $21 million grant for India and a $29 million programme aimed at strengthening Bangladesh's political landscape.
The department stated that the move was part of a larger effort to curb unnecessary expenditures.
Indian officials dismiss US aid claims
Trump's comments came days after economist Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council, criticised the USAID programme. In a post on social media, Sanyal questioned the allocation of funds, terming USAID "the biggest scam in human history".
"Would love to find out who received the $21 million spent to improve 'voter turnout' in India and the $29 million to 'strengthen the political landscape' in Bangladesh; not to mention the $29 million spent to improve 'fiscal federalism' in Nepal. USAID is the biggest scam in human history," he said.
Former Chief Election Commissioner S.Y. Quraishi also refuted suggestions that India had received US funding to boost voter participation.
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"The report in a section of the media about an MoU by ECI in 2012, when I was CEC, for funding of certain million dollars by a US agency for raising voter turnout in India does not have an iota of fact," Quraishi stated on social media.
Meanwhile, the Bharatiya Janata Party (BJP) also criticised the alleged funding, questioning the motives behind what it described as "external interference" in India's electoral process.
A broader policy shift
The DOGE's budget cuts reflect a larger trend in Trump's foreign policy, which has prioritised reducing overseas spending.
Trump's administration has repeatedly questioned the value of foreign aid, arguing that US taxpayers should not be burdened with funding programmes in countries with robust economies.
Trump, who has previously engaged in tariff disputes with India, reiterated concerns over market access and trade barriers.
"India imposes some of the highest tariffs on American products. It's not fair to American workers," he said, highlighting ongoing trade frictions.
The $21 million grant was reportedly intended to fund programmes aimed at improving democratic participation in India.
However, Indian officials maintain that the country has a robust democratic framework and does not require external financial assistance to sustain electoral processes.
Reactions
The decision to cut aid has drawn mixed reactions domestically and internationally. Supporters of Trump's fiscal policies have welcomed the move as a necessary step towards reducing wasteful spending.
Critics, however, argue that such cuts could undermine US influence abroad and disrupt bilateral relations.
While the US State Department has not officially commented on the specifics of the DOGE's decision, the move aligns with the administration's broader efforts to reassess and reduce international commitments.
As the debate over foreign aid continues, the implications of these cuts on US-India relations remain to be seen.
For now, Trump's remarks and the subsequent responses highlight the complexities of balancing fiscal responsibility with diplomatic engagement.
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