Washington, August 10: India has responded to growing misconceptions regarding the proposed Foreign Contribution (Regulation) Amendment Bill 2026 (FCRA). The government asserts that this law will enhance monitoring of foreign funding but will not hinder the operations of compliant civil society organizations.
Vinay Mohan Kwatra, India’s Ambassador to the United States, issued a detailed clarification on Sunday concerning the proposed FCRA Amendment Bill 2026.
Kwatra posted on the social media platform ‘X’, stating, “There are various misconceptions in the media and civil society regarding the FCRA amendment bill 2026.”
He dismissed claims that India is introducing a new law aimed at halting foreign aid to civil organizations. According to Kwatra, regulating the flow of foreign funds into public and political sectors is a sovereign right of any nation, based on national security concerns.
He noted that many democratic countries worldwide have similar regulations as a standard part of governance.
“The truth is that this law does not prevent Indians from receiving foreign donations, nor does it shut down compliant civil organizations,” Kwatra emphasized. He highlighted that thousands of organizations are registered under the FCRA and regularly receive foreign funds for sectors like health, education, disaster relief, research, and humanitarian aid.
Kwatra mentioned that India implemented its first FCRA law in 1976, which was modernized in 2010 and further improved in 2016, 2018, and 2020.
He stated, “The 2026 bill and its associated rules are the next step in that direction. Its aim is to ensure greater transparency, better administration, and clear regulations.”
The ambassador also refuted allegations that the FCRA has harmed NGOs and charitable institutions or that the new amendment would impose further restrictions on their operations.
He pointed out that foreign contributions to registered organizations rose from approximately $1.2 billion in 2010-11 to $2.67 billion in 2024-25.
Kwatra noted that there are over 3 million NGOs in India, but only 14,450 of them hold FCRA registration, meaning most civil organizations are not subject to this law.
He clarified, “The FCRA does not prevent anyone from receiving foreign donations, research grants, or humanitarian aid. It simply states three things: get registered, receive funds according to the stipulated process, and report how the funds were used.”
Kwatra addressed concerns that the amendment could lead to the seizure of assets belonging to NGOs, religious institutions, places of worship, hospitals, schools, and other organizations dependent on foreign donations.
He explained that when an organization’s registration is canceled or voluntarily relinquished, its assets created from foreign contributions and remaining funds are already transferred to an authority designated by the state government. This system has been in place since 2010.
Kwatra added, “The 2026 bill only introduces a designated authority for the protection of these assets and provides a pathway for organizations to regain their registration.”
He noted that if an organization reinstates its registration, all its assets and remaining funds will be fully returned.
Special protections for places of worship have also been mentioned. According to Kwatra, if an organization associated with a place of worship loses its registration, the assets will be transferred to another FCRA-registered organization of the same faith to ensure uninterrupted religious activities.
He firmly rejected accusations that this law targets any specific religion or community.
Kwatra stated, “Nothing could be more incorrect. This law applies equally to all organizations, regardless of religion, community, or ideology.”
Welfare activities, religious education, maintenance of places of worship, and charity work conducted by organizations of all faiths will remain eligible for foreign funding as before.
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