Restrictions on Foreign Fund Flow to Christian Organizations in India Complicate India-US Ties

On March 25, the Foreign Contribution (Regulation) Amendment (FCRA) Bill, 2026, was introduced in India's Lok Sabha, the lower house of Parliament. This bill seeks to amend the FCRA Act of 2010, which governs the intake and utilization of foreign contributions by individuals and entities within India. The bill proposes the creation of a "designated authority" under the Ministry of Home Affairs (MHA) to temporarily take control, manage, and dispose of an organization's assets if its FCRA registration is canceled, surrendered, or becomes "deemed ceased" due to lack of renewal.

This amendment has sparked controversy, with opposition parties and certain American politicians expressing strong disapproval. American Congressmen, including Riley Moore, criticized the bill as an "attack on Christians," while Senator James Risch deemed the proposed changes "deeply concerning," warning that the U.S. would not hesitate to condemn countries violating the human rights of Christians and other religious groups.

India's Ministry of External Affairs dismissed the bill as an "internal matter" and dismissed concerns as "myths." Ambassador Vinay Mohan Kwatra attempted to alleviate Washington's apprehensions by addressing alleged misconceptions regarding the bill. He emphasized that the bill aims to enhance transparency, promote better governance, and establish clearer rules.

In response to the bill, U.S. Ambassador to India Sergio Gor met with Indian Foreign Secretary Vikram Misri and National Security Adviser Ajit Doval, indicating efforts to avert a diplomatic crisis. Gor also intensified his engagement with opposition-controlled states, holding meetings with the chief ministers of Karnataka, Kerala, and Telangana, where the Congress party vehemently opposes the FCRA amendments.

Critics argue that stricter controls could hinder legitimate organizations from accessing international funding. Archbishop Joseph Dsouza, president of the All-India Christian Council, denounced the bill as "legalized theft" of the Indian Christian and global Christian communities. International Christian Concern, a Washington-based organization, alleged that under the Hindu nationalist Bharatiya Janata Party (BJP) government, Christian-aligned NGOs in India are facing increased scrutiny.

In 2016, Compassion International, a Christian charity, was placed on an Indian government watchlist due to suspected involvement in religious conversions. This prompted the U.S. Foreign Affairs Committee to hold a hearing, criticizing Indian government restrictions on the charity's operations. In 2021, the Missionaries of Charity's FCRA license was temporarily revoked, leading to international backlash before it was reinstated by the Indian government.

The government maintains that such laws are not exclusive to India and are "religion-neutral," emphasizing that legitimate organizations have no reason to fear the proposed amendments.