India’s foreign contribution inflows have increased amid tightening government controls on NGOs, with new rules and legislation prompting international criticism over the future of civil society and religious organisations.
India’s foreign funding inflows have continued to climb even as the government has tightened its grip on non-governmental organisations receiving overseas money, according to data shared by the Union home ministry and reporting by Times of India. The figures show that 16,200 NGOs received Rs 22,693 crore in 2024-25, up from Rs 55,741 crore distributed among 13,250 NGOs and associations over the three years from 2019-20 to 2021-22, an annual average of Rs 18,580 crore. At the same time, the number of organisations with active registrations under the Foreign Contribution (Regulation) Act has shrunk sharply.
The shrinking pool of registered groups reflects a broader tightening of the regulatory regime. As of August 6, only 14,434 NGOs were functional, while 22,496 registrations had been cancelled, according to the figures cited by News18. Times of India reported that just 28% of NGOs and associations that had ever been registered under the law remained operational, with the rest either cancelled or expired. That shift has accelerated since 2015, when the Centre began taking a far tougher line on foreign funding.
The latest round of restrictions came in June, when the Ministry of Home Affairs notified the Foreign Contribution (Regulation) Amendment Rules, 2026. Human Rights Watch said the changes gave the government broader powers over the activities, management and leadership of foreign-funded NGOs, building on an already restrictive framework under the 2010 law. EY said the revised rules add a formal definition of “key functionary”, introduce purpose- and geography-specific registration, and impose more detailed reporting requirements for both activity and donor information.
The government has also put forward the Foreign Contribution (Regulation) Amendment Bill, 2026, which would create a “Designated Authority” to take control of foreign contributions and assets built with that money if an organisation’s registration is cancelled or lapses. TeamLease RegTech said the bill also broadens the definition of a key functionary to cover directors, trustees, partners and others who effectively control an organisation. The proposed law says that if the asset is a place of worship, authorities must preserve its religious character.
The legislation has drawn criticism abroad. US Congressman Riley Moore said in a post on X this week that the changes would allow the Indian government to take over churches and religious charities, calling it an attack on Christians. His remarks followed a broader debate in India over how far the state should go in policing foreign donations, especially after the new rules narrowed the grounds on which groups can seek or renew registration. Onmanorama reported that NGOs now have to choose from a defined list of purposes, specify their area of operation and, in some cases, prove they spent at least ₹10 lakh on their stated activities in the previous two financial years.
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