Indian government departments and agencies have started to look into charges that US Agency for International Development (USAID) funds could have been used for interference in internal matters, Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal told a weekly briefing in New Delhi on Friday.
"We have seen the information that has been put out by the US administration regarding certain USAID activities and funding. These are obviously very deeply troubling," Jaiswal stated.
He stated that the claims, initially made by Elon Musk-led Department of Government Efficiency (DOGE) and later reiterated by US President Donald Trump, have led to "concerns about foreign interference in India's internal affairs".
"It would be premature to make a public comment at this stage," Jaiswal stated.
Meanwhile, sources told journalists that there wasn't a problem with USAID funding routed through Indian government departments, but the issue was of possible misuse of funding routed via private organisations such as US-headquartered International Foundation for Electoral Systems (IFES).
The proposed USAID funding was reportedly meant to be routed through Consortium for Elections and Political Process Strengthening (CEPPS), which was allegedly collaborating with groups such as IFES, National Democratic Institute (NDI), International Republican Institute (IRI) and Asian Network for Free Elections.
MEA's remarks come less than a week after DOGE said in a social media post that it had cancelled around $21 million funding meant for "voter turnout" in India.
Following DOGE's revelations, Trump questioned the need to allocate the funding in the first place.
"Why do we need to spend $21 million on voter turnout in India? I guess they were trying to get somebody else elected. We have got to tell the Indian Government," Trump told a conference in Miami this week.
On Thursday, Trump reiterated his concerns at the Republican Governors Association meeting in Washington DC, calling US funding for voter turnout in India as a "kickback scheme".
“Now it’s a kickback scheme, they get it, they spend it, they kick it back to the people that sent it," Trump said.
Meanwhile, the Trump administration's claims have triggered a political row in India.