India faces criticism over proposed expansion of foreign funding rights on NGOs News
Ministry of Parliamentary Affairs, GODL-India, via Wikimedia Commons
India faces criticism over proposed expansion of foreign funding rights on NGOs

Human  Rights watchdog Amnesty International on Thursday warned that India’s proposed extension of restrictions on overseas funding for non-governmental organisations (NGOs) would curtail civil society space and undermine fundamental rights. Through the Foreign Contribution Bill 2026, the government seeks to expand and prolong regulatory controls under the existing Foreign Contribution (Regulation) Act 2010 (FCRA) framework.

Amnesty International further stated that the proposed amendments would “restrict access to foreign funding” and exacerbate an already “punitive and restrictive environment” for NGOs operating in India. Chair of the Board at Amnesty International India, Aakar Patel, stated:

 As of 26 March 2026, official data shows that 21,933 organisations had lost their FCRA licenses, depriving them of essential funds and often resulting in their closure or severe restrictions on their activities. Our research has demonstrated that those most impacted are organisations associated with minority rights, right to freedom of expression, environmental rights and climate action.

According to official government data, over 21,000 organisations have had their FCRA registrations suspended or cancelled in recent years, significantly limiting civil society organisations and the effectiveness of their committed causes. Compliance requirements, including stringent reporting standards and administrative caps, have made it increasingly difficult for NGOs to function effectively. Concerns have also been raised about vague provisions that may allow authorities to deny funding permissions on broad or undefined grounds.

Analysis of the new bill suggests that it could further centralise control and expand government discretion in granting and revoking licenses, and impose tighter restrictions, such as prohibiting sub-granting of funds and reducing permissible administrative expenses.

The FCRA framework was scrutinised in Noel Harper v. Union of India, where the Supreme Court upheld the 2020 amendments, emphasising the state’s interest in regulating foreign contributions while acknowledging concerns about the impact on civil society. 

Amnesty International previously reported that the FCRA has been used to target organisations engaged in advocacy, particularly those working on human rights and accountability issues. Similar concerns have been echoed by global philanthropic bodies, which note a chilling effect on international collaboration and funding flows.

The Indian government maintains that the FCRA is necessary to ensure transparency and prevent misuse of foreign funds. However, the cumulative effect of successive amendments has been to severely constrain the ability of NGOs to operate independently.

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