India has defended the proposed FCRA Amendment Bill 2026, saying the changes are intended to improve transparency, governance and oversight of foreign funding rather than restrict legitimate civil society activities.
Ambassador to the United States Vinay Mohan Kwatra outlined the government’s position in a “Myth vs. Reality check” shared on X. He said registered organisations can continue to receive foreign contributions for activities including health, education, research, disaster relief, humanitarian work and faith based activities, subject to the rules prescribed under the Foreign Contribution (Regulation) Act.
Kwatra said regulating foreign financial flows in public and political spaces is a sovereign measure linked to national security and governance. He also pointed to the large number of associations registered under the FCRA that regularly receive overseas contributions for legitimate activities.
According to the figures cited by the government, foreign contributions received by registered organisations increased from around $1.2 billion in 2010-11 to $2.67 billion in 2024-25. The government has used the data to underline that the FCRA framework does not prevent eligible organisations from accessing foreign funding.
FCRA registration and reporting requirements
Addressing concerns raised by NGOs and charitable organisations, Kwatra said the FCRA does not prohibit foreign donations. Instead, organisations covered by the law must obtain registration or prior permission, receive funds through prescribed channels and maintain records of how the contributions are used.
The proposed changes also address the treatment of assets created using foreign contributions. The government said the framework would designate an authority to safeguard such assets and provide a mechanism for their return if an organisation’s registration is restored.
The proposal also includes provisions relating to places of worship. Where required, eligible assets would be transferred to another FCRA registered organisation belonging to the same faith, providing a specific framework for handling such assets.
Government rejects claims of targeting specific groups
Kwatra also rejected claims that the proposed legislation targets a particular religion, community or ideology. He said the FCRA applies uniformly across organisations, regardless of their religion, community or ideological affiliation.
The government also referred to foreign funding and foreign agent regulations in countries including the United States, Australia, Canada and the United Kingdom. It cited these frameworks while responding to suggestions that India’s proposed changes would make the country an international outlier in regulating overseas funding.
Under the existing FCRA framework, organisations covered by the law must follow prescribed requirements related to registration, banking, accounting and reporting. These requirements are intended to provide greater visibility into the receipt and use of foreign contributions.
The government has said the proposed FCRA changes will strengthen transparency, accountability and oversight of foreign contributions while allowing compliant civil society organisations to continue their legitimate activities.
The proposed amendments therefore seek to tighten oversight of foreign funding while maintaining a framework through which eligible organisations can receive and use overseas contributions in accordance with the law.
