Washington, Aug 10: India has rejected concerns surrounding the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, saying the legislation is intended to tighten oversight and improve transparency in foreign funding rather than restrict lawful civil society activity.
Indiaβs Ambassador to the United States, Vinay Mohan Kwatra, issued a βMyth vs. Reality checkβ on Sunday, addressing what he described as misunderstandings in the media and civil society about the proposed amendments. In a series of posts on X, Kwatra said regulating foreign financial flows in public and political spaces was a sovereign measure linked to national security and was consistent with governance practices in democracies.
Rejecting claims that the proposed law would cut off foreign assistance to civil society, Kwatra said the FCRA does not prohibit Indians from receiving foreign contributions or shut down organisations that comply with the law. He said tens of thousands of associations registered under the FCRA receive overseas funds for health, education, disaster relief, research and humanitarian activities.
India enacted the first FCRA in 1976 before replacing it with a new framework in 2010. The law was subsequently amended in 2016, 2018 and 2020. Kwatra described the 2026 Bill and Rules as the next stage of that process, aimed at greater transparency, improved governance and clearer regulations.
He also disputed claims that the FCRA had harmed NGOs and charitable organisations. According to Kwatra, foreign contributions received by registered organisations increased from about $1.2 billion in 2010-11 to $2.67 billion in 2024-25. Of more than three million NGOs in India, he said, only 14,450 have FCRA registration, leaving the vast majority of civil society organisations outside the lawβs scope.
Kwatra said the framework requires covered organisations to register, receive foreign funds through prescribed procedures and report their utilisation.
Addressing concerns over the possible seizure of assets, he said foreign contributions and assets created from such funds already vest in a state government authority when an organisationβs FCRA registration is cancelled or surrendered, a provision that has existed since 2010. The proposed legislation, he said, would create a designated authority to safeguard such assets and provide a mechanism for their return if registration is restored.
He said places of worship would receive separate protection. Property associated with a place of worship and created by an association whose registration was cancelled would be transferred to another FCRA-registered organisation of the same faith to maintain continuity of worship.
Kwatra also rejected allegations that the legislation targets any particular religion or community, saying the Act applies uniformly regardless of religion, community or ideology. Faith-based welfare, religious education, maintenance of places of worship and charitable activities by organisations of all faiths would remain eligible for foreign funding, he said.
On claims that India would become an international outlier, Kwatra cited the US Foreign Agents Registration Act of 1938 and Foreign Account Tax Compliance Act of 2010, as well as legislation in Australia in 2018 and Canada in 2024. He also pointed to the UK’s scheme, which took effect in July 2025, and said the European Union was considering legislation.
The FCRA regulates the acceptance and use of foreign contributions by individuals, associations and companies in India. Covered organisations must obtain registration or prior permission and comply with prescribed banking, accounting and reporting requirements.
