Foreign funding up despite tightening of FCRA rules
Despite the tightening of regulations, foreign contributions to NGOs have surged. Recently, however, there has been a notable decline in the number of registered NGOs, now totaling merely 14,500 compared to several lakh in the past. The government emphasizes that the amendments focus on specific foreign-funded channels, aiming to enhance oversight without hindering the broader civil society…
Foreign contributions to NGOs in India have seen a rise despite the tightening of Foreign Contribution (Regulation) Act (FCRA) rules under the Modi government, according to official data. Despite a decline in the total number of NGOs registered under the FCRA, the inflow of foreign funding has increased. In the fiscal year 2024-25, 16,200 NGOs received foreign contributions amounting to Rs 22,963 crore.
This is a significant increase from the Rs 55,741 crore received by 13,250 NGOs during the period of 2019-20 to 2021-22. Currently, barely 28% of NGOs and associations registered under the FCRA are deemed active, with the number of active NGOs reducing to 14,434 as of August 6, 2026, from 22,496. The ministry addressed criticisms against the FCRA bill, clarifying that the proposed amendments target a specific foreign-funded channel and not the entire civil society.
The ministry also clarified that the designated authority would only manage assets created from foreign contributions and that the orders would be subject to appeal before the court. The regulations apply uniformly to all organizations, regardless of religion, community, or ideology.
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