India's government doesn't accept aid, so whatever "aid" is being sent is to shady institutions anyway. Stopping this "aid" will only net the country a positive impact.
That's a strange claim. A quick Google will provide all kinds of data on the aid being sent to India from multiple countries. The recent "USAID kerfuffle" also surfaced all the instances of the current government accepting USAID funding, e.g. https://www.newslaundry.com/2025/02/22/before-bjps-usaid-out...
Something not talked about much in the press is how much FCRA has hurt NGOs and non-profits operating in India. From personal experience: I tried to get my US-based employer to match my donation to a local non-profit in India, which didn't work out because FCRA regulations basically made it a non-starter.