India has tightened rules governing foreign funding for non-governmental organizations, requiring them to specify how overseas money will be used, where they will operate, and comply with stricter disclosure requirements.
The amended Foreign Contribution (Regulation) Act rules were issued this week, adding new layers of oversight for thousands of registered groups.
What do the new FCRA rules require NGOs to do?
NGOs applying for FCRA registration must now select their activities from an approved government list covering education, health, culture, religion, economic development and social welfare, and declare which geographic areas they will work in.
They must provide more detailed disclosures on their websites and social media accounts. Annual filings must include expanded activity reports and project-level breakdowns of how foreign funds are spent.
Which organizations are barred under the updated FCRA framework?
Organizations that have foreign nationals as key functionaries will generally be ineligible to receive foreign funds under the new rules. The government also introduced a fresh bill in parliament this week, seeking to strengthen oversight and expand disclosure requirements further.
Critics say tightening compliance norms has made it progressively harder for foreign-funded groups to operate in India.
How has India's foreign funding policy changed since 2014?
Since Prime Minister Narendra Modi's government took office in 2014, thousands of non-profit groups have been suspended or barred from receiving foreign funding, with some accused of using the money for "anti-national activities."
A major 2020 FCRA amendment banned the transfer of foreign funds between NGOs and cut the administrative expense limit from 50 percent to 20 percent. The latest rules continue that pattern of incremental tightening of the FCRA framework.
