U.S. Cuts Aid to India and Bangladesh Following Modi-Trump Talks

The United States has announced a suspension of financial aid to India and Bangladesh, a move that comes just days after a meeting between Indian Prime Minister Narendra Modi and former U.S. President Donald Trump.

The U.S. government has decided to halt a $21 million grant (approximately ₹182 crore) previously provided to India for enhancing voter participation. This decision was announced by the Department of Government Efficiencies (DGoE), an entity reportedly led by billionaire Elon Musk. Similarly, the U.S. has also suspended a $29 million grant (approximately ₹251 crore) allocated to Bangladesh to strengthen its political framework.

This aid suspension is part of broader budget cuts in international assistance. Until now, the grants were aimed at improving electoral processes and ensuring political stability in both India and Bangladesh.

The timing of this decision has drawn attention, as it follows closely after the recent meeting between Modi and Trump. Elon Musk has repeatedly emphasized the need for budget reductions to prevent financial instability in the U.S. Now, as part of these cuts, financial aid to India and Bangladesh has been discontinued.

The latest U.S. policy shift may also affect aid provided to several other countries.