USAID closure: Experts warn of setbacks for health, climate, development programmes in India

New Delhi: The closure of the United States Agency for International Development (USAID) is likely to have far-reaching consequences for India, with experts warning key programmes in health, water, sanitation, and hygiene (WASH), and climate resilience could suffer major setbacks.

One of the experts, however, added India's growing economy may be able to offset some of the immediate fallouts, but other nations such as Sudan, Ukraine and Uganda will suffer more.

The head of an NGO working in the development sector said the USAID exit will have a "huge impact," as the agency has been at the forefront of tackling several issues.

"They have been on the frontier working on TB, maternal health and WASH. The have initiated so many innovative programmes. They created a programme under WASH called local development. The impact is going to be huge, even in terms of the nature of intervention," she said, requesting anonymity.

She emphasised that long-term change requires sustained collaboration and leadership, which the USAID provided.

"If you do one thing very well but don't strengthen related areas, you may see short-term gains, but they won't endure. Holistic change needs donors like USAID. They were even providing leadership. We had a sub-grant from them, never a direct grant, but they were running something called Momentum, which was really helping in reproductive health. We also work at the grassroots, and we saw the impact it was having on the ground," she added.

Billionaire Elon Musk recently announced President Donald Trump had agreed with him to shut the agency.

According to the founder of a health sector NGO, USAID grants had already been shrinking in recent years, with the agency focusing more on sustaining existing programmes rather than launching new ones.

"But even that plays an important role," he said. "If these programmes fail or slow down, communities feel demoralised. We cannot afford a failure, and then it becomes very difficult to get a groundswell." Population Foundation of India Executive Director Poonam Muttreja criticised the decision to close USAID.

"Elon Musk's baseless claim that USAID is a 'criminal organization' is not just absurd', it is dangerous. For decades, USAID has been at the forefront of humanitarian efforts, providing life-saving aid to some of the world's most vulnerable populations. Dismissing it with such reckless rhetoric ignores the millions who rely on its programmes and undermines America's credibility as a global leader in development," Muttreja said.

She warned that while India's growing economy may be able to offset some of the immediate fallout, other nations dependent on USAID's support such as Sudan, Ukraine, and Uganda' will suffer.

"Some of the world's most vulnerable populations, from Sudan, Ukraine and Uganda to the Ivory Coast, will see maternal and mental health services disrupted or eliminated. Millions of women in Afghanistan, Gaza, Ukraine, and other crisis zones now face uncertainty," she said, adding that the move reinforces a broader U S retreat from international cooperation following its withdrawal from the World Health Organization.

USAID has been a crucial partner in addressing India's development challenges, leveraging local financial and human resources to drive large-scale projects.

Over the years, the agency established 34 public-private partnerships, mobilising an additional $380 million to advance critical initiatives.

One of USAID's most significant contributions has been in health care, particularly in reducing child and maternal mortality, combating tuberculosis and HIV, and improving sanitation.

Its maternal and child health programmes across six states have helped 2.8 million pregnant women and 2.6 million newborns access better medical care.

Additionally, the USAID work in making 1,000 cities open-defecation-free and reducing diarrhea-related deaths among children under five has been pivotal, according to USAID website.

The agency said it has also played a key role in India's clean energy and climate resilience efforts. It has worked with state governments to deploy rooftop solar systems, promote energy-efficient technologies, and improve forest management.

With India home to nine of the world's 10 most polluted cities, USAID's role in reducing greenhouse gas emissions and supporting the green bond market has been critical.

Internally, the situation within USAID remains uncertain, with employees grappling with the abrupt decision and its implications.

"There's complete chaos right now. No one knows what's happening, and there's been no clear directive from leadership on how to wind down operations," said a USAID official involved in South Asia programs, speaking anonymously.

"Programs that have taken years to build could collapse overnight, leaving millions without crucial support." Beyond India's domestic challenges, USAID has played a strategic role in fostering regional stability by promoting trade and investment, particularly with Afghanistan.