NEW DELHI: India is moving to tighten regulations governing foreign-funded non-governmental organisations, with proposed legal amendments giving authorities greater powers over organisations that lose permission to receive overseas contributions.
The amendments to the Foreign Contribution Regulation Act (FCRA), proposed by Prime Minister Narendra Modi’s government, would establish a designated authority to manage foreign-funded land, buildings and other assets belonging to organisations whose registrations are cancelled or not renewed.
The government on Wednesday rejected opposition calls to withdraw the amendments but did not force an immediate parliamentary vote. The bill was instead referred to a joint committee for review, potentially allowing recommendations before parliament’s winter session.
New Delhi says stronger oversight is necessary to ensure foreign contributions are properly received, used and accounted for and to guard against covert foreign influence.
The government’s Press Information Bureau said the legislation does not restrict legitimate charitable work but provides a framework for “genuine international co-operation” while ensuring compliance with Indian law.
NGOs raise concerns
Charities, Christian organisations and opposition parties have expressed concern that the proposed rules could affect schools, hospitals, places of worship and humanitarian programmes.
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India has around 600,000 active non-profit organisations registered on the government’s Darpan portal. Organisations receiving foreign funding are already required to register under the FCRA and renew their registration every five years.
Official figures cited by the Financial Times show nearly 22,000 registrations have been cancelled over the past decade, while around 15,000 have ceased.
The proposed amendments would allow registrations to be cancelled “in the public interest” and empower the designated authority to manage and potentially dispose of affected assets.
India’s government has rejected suggestions that the measures amount to indiscriminate asset seizures. Indian Ambassador to the United States Vinay Mohan Kwatra said foreign contributions to registered organisations increased from about $1.2 billion in 2010-11 to $2.67 billion in 2024-25, arguing that India continues to welcome genuine international partnerships.
