India has introduced further restrictions on foreign funding for non-governmental organizations through amendments to the Foreign Contribution Regulation Act (FCRA), drawing strong criticism from civil society groups and minority institutions.
A key provision in the 2026 amendment is the creation of a government-appointed “Designated Authority” that can take provisional control of foreign contributions and assets of NGOs in cases where their registration is cancelled, surrendered, or expires. This authority would have the power to supervise and manage assets, even those only partially funded through foreign contributions—raising concerns about increased state control over nonprofit operations.
The move comes under the government of the Bharatiya Janata Party (BJP), led by Prime Minister Narendra Modi. Over the past decade, the government has revoked or suspended FCRA registrations of more than 20,000 organizations, citing regulatory violations such as non-compliance with reporting requirements and alleged misuse of funds.
However, critics—including the Catholic Bishops’ Conference of India—have described the amendments as “draconian” and raised concerns about fairness, transparency, and accountability. The CBCI warned that the provisions grant sweeping powers to the government, allowing it not only to cancel licenses but also to assume control over institutional assets, including funds and properties. It has called for broader consultation, arguing that the amendments could affect fundamental rights and disproportionately impact minority-run organizations.
Christian groups have expressed particular concern, noting that a large share of NGOs affected by past license cancellations were linked to Christian programs. Organizations such as World Vision India and the Evangelical Fellowship of India have faced cancellations in recent years, while others have encountered operational restrictions.
Government officials maintain that the stricter rules are necessary to prevent misuse of foreign funds, including allegations of their use in religious conversions or activities beyond approved mandates. Minister of State for Home Affairs Nityanand Rai emphasized that the government will take strong action against any violations.
Opposition leaders and civil rights advocates, however, argue that the expanded powers could be used selectively to target dissenting voices, opposition groups, and minority institutions. They warn that the amendment may further tighten the regulatory environment for civil society, potentially affecting organizations working in education, healthcare, and social development.
The 2026 amendment builds on earlier changes introduced in 2020, which had already imposed stricter compliance requirements on NGOs receiving foreign funding. With the new provisions, India’s regulatory framework for foreign-funded organizations is set to become significantly more stringent, intensifying the debate over accountability, governance, and the space for civil society in the country.
