New Delhi, August 10: India has rejected what it called misunderstandings surrounding the proposed FCRA Amendment Bill, 2026.
Indian Ambassador to the United States Vinay Mohan Kwatra issued a “Myth vs Reality” explanation on Sunday.
Kwatra said the proposed law would strengthen oversight of foreign funding without stopping lawful civil society activities.
He said regulating foreign financial flows was a sovereign measure linked to national security and governance.
Kwatra Explains Proposed FCRA Amendment Bill
Kwatra said the law would not prevent Indians from receiving foreign donations. He noted that thousands of associations currently receive foreign funds.
These organisations use the funds for health, education, disaster relief, research and humanitarian activities.
India introduced the FCRA in 1976. It replaced that framework with a new law in 2010 and amended it in 2016, 2018 and 2020.
Kwatra said the 2026 proposal would focus on transparency, governance and clearer rules.
He said foreign contributions received by registered organisations increased from about $1.2 billion in 2010 to $2.67 billion in 2024 25.
India has more than three million NGOs, while 14,450 organisations hold FCRA registration, according to Kwatra.
He said the law requires organisations to register, follow prescribed procedures and report how they use foreign funds.
Kwatra also addressed concerns over assets held by organisations whose FCRA registration is cancelled or surrendered.
He said foreign funded assets already vest with a state authority under provisions introduced in 2010. The proposed bill would create a designated authority to safeguard such assets.
He added that organisations restoring their registration would receive their assets and unused funds back.
Kwatra said places of worship would receive separate protection. Their assets could be transferred to another FCRA registered organisation of the same faith.
He rejected claims that the proposed law targets any particular religion or community. He said the FCRA applies equally to organisations regardless of religion or ideology.
Kwatra also cited foreign funding regulations in the United States, Australia, Canada, the United Kingdom and the European Union.
The FCRA regulates foreign contributions received and used by individuals, associations and companies in India. Covered organisations must obtain registration or prior permission and follow financial reporting requirements.
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