Foreign Funding to Indian NGOs Rises to Rs 22,963 Cr Despite Tighter FCRA Rules

Despite the government's progressive tightening of the Foreign Contribution (Regulation) Act (FCRA), foreign contributions to Indian non-governmental organisations (NGOs) have increased, even as the number of registered NGOs has declined. According to figures shared by the Union home ministry last month, 16,200 NGOs received foreign contributions worth Rs 22,963 crore in the financial year 2024-25.

In comparison, during the three years from 2019-20 to 2021-22, a total of Rs 55,741 crore was received by 13,250 NGOs through the FCRA route, as per data cited by the ministry in Parliament in December 2023. This works out to an average of approximately Rs 18,580 crore per year. The latest figures thus represent a significant increase in annual foreign funding, despite stricter regulations.

The data also highlight a sharp decline in the number of active FCRA-registered organisations. As reported earlier, barely 28% of NGOs ever registered under FCRA are currently active, with the licences of the remaining 72% either deemed cancelled or expired. As of August 6, 2025, only 14,434 NGOs were active. The FCRA registration of 22,496 NGOs has been cancelled so far, mostly after 2015 when nearly 10,000 NGOs lost their licences.

The Union home ministry has also addressed criticism directed against the FCRA amendments, particularly from Christian organisations. It underlined that FCRA-registered associations are a small fraction of all NGOs operating in India. "The active FCRA database stands at 14,500 against several lakh registered NGOs," the ministry said, asserting that the proposed amendments target a specific, foreign-funded channel, not civil society at large.

On concerns that the amendments would give the government unbridled powers to seize an NGO's assets, the ministry clarified that the designated authority would manage only assets created from foreign contributions, and only once an organisation's FCRA registration has lawfully ceased. "Vesting is initially provisional, with full restoration if registration is renewed, and places of worship retain their religious character by law in all cases," it stated, adding that the designated authority's orders would not be final but subject to appeal before a district judge.

Regarding fears that the amendments target a particular religion or community, the ministry clarified that the provisions apply uniformly to all organisations, regardless of religion, community or ideology.

The FCRA was originally enacted to regulate foreign contributions to ensure that such funds do not adversely affect India's internal security or public interest. Over the years, the rules have been progressively tightened, including amendments in 2020 that introduced Aadhaar-based registration, made registration valid for five years, and increased restrictions on the use of funds. Critics argue that these measures have made it harder for NGOs to function, while the government maintains that they are necessary for transparency and accountability.