Washington, August 10, 2026 (Yes Punjab News)
India has rejected what it described as “misunderstandings” surrounding the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, saying the legislation is aimed at strengthening oversight of foreign funding while allowing lawful civil society organisations to continue their work.
India’s Ambassador to the United States, Vinay Mohan Kwatra, issued a detailed “Myth vs. Reality check” on Sunday through a series of posts on X, addressing concerns raised in the media and civil society about the proposed amendments.
Kwatra said regulating foreign financial flows in public and political spaces was a sovereign measure linked to national security and was consistent with practices followed by democracies worldwide.
Rejecting claims that the proposed law would cut off foreign funding to civil society, he said the FCRA does not prevent Indian organisations from receiving foreign donations. He noted that thousands of associations are registered under the law and receive overseas funding for health, education, disaster relief, research and humanitarian activities.
India introduced the FCRA in 1976 and replaced it with a revised framework in 2010, followed by amendments in 2016, 2018 and 2020. Kwatra described the 2026 Bill and Rules as the next step towards greater transparency, governance and clarity.
He said foreign contributions received by registered organisations increased from around $1.2 billion in 2010-11 to $2.67 billion in 2024-25. Of more than three million NGOs in India, only 14,450 currently hold FCRA registration, he added.
Addressing concerns over assets of organisations whose registration is cancelled or surrendered, Kwatra said foreign contributions and assets created from them already vest with a state government authority under provisions in force since 2010. The proposed Bill, he said, would designate an authority to safeguard such assets and provide for their return if registration is restored.
He also said properties linked to places of worship would receive specific protection, with such assets transferred to another FCRA-registered organisation of the same faith to ensure continuity of worship.
Kwatra rejected allegations that the legislation targets any particular religion or community, saying the law applies uniformly irrespective of religion, ideology or community.
He further argued that India is not an international outlier, pointing to foreign-funding and foreign-influence regulations in countries including the US, Australia, Canada and the UK.
The FCRA regulates the acceptance and use of foreign contributions by individuals, associations and companies in India. Covered organisations are required to obtain registration or prior permission and comply with prescribed banking, accounting and reporting requirements.
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