Crackdown on foreign funding: How govt is tightening its grip

The government has intensified its scrutiny of organisations receiving foreign funding under the Foreign Contribution (Regulation) Act (FCRA), resulting in a substantial number of licence cancellations in recent years.

- SHIKHA CHATURVEDI

A deeper analysis of data from the annual reports of the Ministry of Home Affairs (MHA) reveals a shifting regulatory approach.

In 2019-20, the approval rate for FCRA renewals stood at a mere 41.2 per cent, with denials reaching 53.3 per cent. This trend reversed in 2020-21, when approvals surged to 76.3 per cent, while denials dropped to 22.4 per cent.

The following year, 2022-23, saw a spike in approvals to 97.9 per cent, with denials at an all-time low of 2.1 per cent.