Donald Trump Halts USAID: How This Could Impact India's Healthcare Services

United States, lead by the Trump administration has decided to freeze the United States Agency for International Development (USAID) until further notice. What is USAID and why it can make a mark on the Indian healthcare sector.

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Written By: Kinkini Gupta | Updated : February 5, 2025 3:19 PM IST

United States, lead by the Trump administration has decided to freeze the United States Agency for International Development (USAID) until further notice. What is USAID and why it can make a mark on the Indian healthcare sector?

According to health experts, halting the USAID will also halt programmes for combating tuberculosis (TB), HIV/AIDS, and improving maternal and child health in India. Without their aid, these healthcare sectors in India may face a sudden crunch which may hinder in services to people and NGOs.

What Is USAID?

The United States Agency for International Development or USAID is a U.S. government agency whose main job is to provide foreign aid and development assistance to many countries accross the world, especially the third world countries. Its primary mission is to promote economic development, improve living standards, support education, advance healthcare, and foster democratic governance in developing nations.

USAID's Role On Health

USAID has diverse role all across the world and among them these following are the most crucial functions:

  1. Health Sector: USAID works on combating and tackling infectious diseases across the world like for example, HIV/AIDS, malaria, and tuberculosis. It works towards the improvement of maternal and children's health and also strengthens health systems.
  2. Economic Development: It boosts countries economic landscape by supporting entrepreneurship, sustainable agriculture and job creation.
  3. Democracy and Governance: Its job is also to promote human rights, free and fair elections and rule of law.
  4. Humanitarian Assistance: Aiding disaster-prone and disaster-ridden regions and aiding refugees and displaced persons.
  5. Education: Expanding access to quality education and vocational training.

USAIDS Role In Indian Healthcare

USAID has had a very significant role in Indian healthcare and if Donald Trump permanently freezes aid, the industry could suffer from a serious hit. India faces health challenges such as high maternal and child mortality, highest tuberculosis burden and widespread malnutrition. USAID focused on these issues and aimed at preventing up to 2 million deaths every year and also tackle about 20 per cent of the country's overall mortality rate.

India also has the third-largest population of people living with HIV, faces restricted healthcare access for vulnerable groups, and sees more than 39 million people falling into poverty annually because of medical costs.

USAID partners with the Government of India, the private sector, and civil society to improve access to affordable, high-quality healthcare for disadvantaged and at-risk populations. These initiatives build on decades of USAID's efforts to strengthen India's healthcare infrastructure.