Foreign funding up despite tightening of FCRA rules

As per figures shared by home ministry last month, 2024-25 witnessed 16,200 NGOs receiving foreign contributions worth Rs 22,963 crore

NEW DELHI: Notwithstanding the progressive tightening of laws governing foreign contributions under Modi govt, their inflow has grown even though the total number of NGOs registered under Foreign Contribution (Regulation) Act, 2020, has declined.As per figures shared by home ministry last month, 2024-25 witnessed 16,200 NGOs receiving foreign contributions worth Rs 22,963 crore. During the three years from 2019-20 to 2021-22, Rs 55,741 crore was received in foreign funding by 13,250 NGOs/associations through FCRA route, as per data cited by the ministry in Parliament in Dec 2023. This translates to an average of Rs 18,580 crore per year.As reported earlier by TOI, barely 28% of NGOs and associations ever registered under FCRA are currently active, with licences of the other 72% either deemed cancelled or deemed expired. As of Aug 6, 2026, only 14,434 NGOs were active. FCRA registration of 22,496 NGOs has been cancelled so far, mostly after 2015 when nearly 10,000 NGOs lost their licences.In a recent statement, the ministry had addressed the criticism directed against the FCRA bill, particularly by Christian organisations. It underlined that “FCRA-registered associations are a small fraction of all NGOs operating in India. “The active FCRA database stands at 14,500 against several lakh registered NGOs,” it said while asserting the proposed amendments target a specific, foreign-funded channel, “not civil society at large”.

The ministry also tried to allay fears that the proposed amendments would give govt unbridled powers to seize an NGO’s assets, clarifying the designated authority shall manage only assets created from the foreign contributions and only once the organisation’s FCRA registration has lawfully ceased.”Vesting is initially provisional, with full restoration if registration is renewed, and places of worship retain their religious character by law in all cases,” it clarified and added that the designated authority’s orders would not be final but subject to appeal before the court of the district judge.As regards fears that the amendments specifically target a particular religion or community, the ministry clarified that it applies uniformly to all organisations regardless of religion, community or ideology.