TIGHTER FOREIGN FUNDING RULES MAKE NGOs UNHAPPY

The proposed Foreign Contribution (Regulation) Amendment Bill, 2026 has reignited a nationwide debate over the regulation of foreign-funded non-governmental organisations (NGOs), with the government arguing that stricter oversight is essential for national security and transparency, while civil society groups and religious organisations warn that the changes could hamper legitimate humanitarian work.

- TIKAM SHARMA

Introduced in the Lok Sabha during the Budget Session and notified last week, the Bill proposes a significant overhaul of India’s foreign funding regime by strengthening centralised control over overseas contributions. Among its key provisions are the creation of a designated authority to oversee foreign funding, tighter compliance mechanisms and more restrictive investigative procedures aimed at preventing misuse of foreign contributions.

INDIA’S FOREIGN FUNDING ECOSYSTEM

The amendments come against the backdrop of India’s vast foreign funding ecosystem. Every year, thousands of NGOs, charitable trusts, educational institutions, hospitals, research organisations and religious bodies receive overseas donations amounting to several thousand crore rupees.

Between 2019 and 2022 alone, over Rs 55,741 crore in foreign contributions were received by FCRA-registered organisations in India. In 2024-25, the figure stood at approximately Rs 20,000 crore. These are not small sums, they are resources capable of shaping public discourse, influencing electoral sentiment, funding protest movements, and swaying policy outcomes.

The government has maintained that the proposed changes are necessary to improve accountability and ensure that foreign contributions are utilised strictly for the purposes for which they are received. Officials have repeatedly argued that enhanced scrutiny is required to prevent misuse of overseas funds and safeguard India’s national interests.

VIOLATIONS THAT TAKE PLACE