The Home Ministry told a parliamentary panel that proposed amendments regulate foreign money entering India, not charitable activity.
NEW DELHI (India CSR): The Union Home Ministry has defended the Foreign Contribution (Regulation) Amendment Bill, 2026, as a national security measure intended to address legal gaps, improve transparency and strengthen the regulation of foreign funds entering India.
The ministry’s clarification came during the first meeting of the Joint Parliamentary Committee examining the proposed legislation. The meeting followed concerns raised by opposition parties and Christian organisations that some provisions could disproportionately affect minority-run educational, healthcare, religious and welfare institutions.
A team of senior ministry officials, led by Union Home Secretary Govind Mohan, briefed the parliamentary panel on the objectives, regulatory background and possible implications of the proposed amendments.
Officials maintained that the legislation was not directed against any community. They said the law regulates the entry and use of foreign money within India’s sovereign jurisdiction rather than controlling charitable activity itself. The ministry described the FCRA as being fundamentally linked to national security, internal security, public order and the national interest. The briefing also argued that experience in administering the existing law had revealed legal and operational gaps, inconsistent practices, administrative uncertainty and avoidable litigation.
Key Facts
| Indicator | Reported figure |
|---|---|
| Active FCRA-registered organisations | 14,466 |
| Active organisations in 2015 | 29,022 |
| Foreign contribution in 2024–25 | ₹22,974 crore |
| Foreign contribution in 2015–16 | ₹17,832 crore |
| Funding received from the United States | ₹12,113 crore |
| Funding received from the United Kingdom | ₹2,414 crore |
| Funding used for social activities | ₹13,071 crore |
| Funding used for education | ₹6,933 crore |
| Funding used for religious purposes | ₹1,841 crore |
NGO Numbers Decline
The parliamentary briefing highlighted a major change in India’s foreign-funded civil society landscape. The number of active FCRA-registered organisations has declined from 29,022 in 2015 to 14,466—representing a fall of more than 50%. Foreign contributions, however, increased during the same broad period. Annual receipts rose from Rs. 17,832 crore in 2015–16 to Rs. 22,974 crore in 2024–25, an increase of Rs. 5,142 crore, or nearly 29%.
The figures indicate that foreign funding is now being handled by a considerably smaller pool of registered organisations. Tamil Nadu has the highest number of active FCRA-registered organisations at 2,102. It is followed by Maharashtra with 1,578, Karnataka with 1,355 and Delhi with 1,218.
Social Activities Lead
Purpose-wise data presented to the committee showed that social activities received the largest share of foreign contributions in 2024–25. Around Rs. 13,071 crore, representing 57% of the total foreign contribution, was reportedly directed towards social activities. Education received Rs. 6,933 crore, accounting for approximately 30%.
Religious purposes accounted for Rs. 1,841 crore, or around 8% of the total foreign funding received during the year. Of the amount classified under religious purposes, Christian organisations received 73.05%, while Hindu organisations accounted for 17.81%. Muslim organisations received a little over 1%, according to the data placed before the panel.
The figures are significant because the political debate around the proposed amendments has focused heavily on their possible impact on religious and minority-run institutions. The ministry cited the relatively small overall share allocated to religious purposes while rejecting allegations that the legislation targeted any particular community.
United States Leads
The United States remained the largest source of foreign contributions to India in 2024–25, providing Rs. 12,113 crore—approximately 53% of the total. The United Kingdom was the second-largest source, contributing Rs. 2,414 crore, or about 10.5%. Germany, Switzerland and Singapore were also listed among the leading source countries.
The high share originating from a limited number of countries highlights the concentration of India’s foreign philanthropic and development funding. It also underlines the importance of transparent reporting, donor due diligence and continuity planning among recipient organisations.
Opposition Raises Objections
Opposition members reportedly told the committee that the proposed amendments could give the executive excessive authority over NGOs and their assets. Their concerns centred on provisions governing the supervision, management and possible vesting of foreign contributions and assets belonging to organisations whose FCRA registrations are cancelled, surrendered or cease to remain valid.
Some members argued that even organisations voluntarily surrendering their registrations could face the risk of losing control over assets. They described the proposed framework as excessive and sought stronger procedural and constitutional safeguards.
DMK member P Wilson reportedly repeated concerns that Christian organisations could face a disproportionate impact because they constitute a substantial share of religious bodies holding FCRA registrations. Some opposition members also argued that such organisations had made important contributions to the empowerment of Dalits and women, particularly in southern India.
The government has rejected the allegation that the bill is directed against minorities.
Development Protests Discussed
The parliamentary discussions also referred to protests against major infrastructure projects, including the Kudankulam Nuclear Power Plant in Tamil Nadu and the Sardar Sarovar Dam in Gujarat.
Committee chairperson Sanjay Jaiswal reportedly raised questions about opposition to these projects and whether they ultimately delivered public benefits. BJP members have alleged that foreign-funded organisations attempted to obstruct projects considered important to the national interest under the cover of environmental concerns.
Such claims remain politically contested. Civil society organisations have maintained that public advocacy, environmental scrutiny and community participation are legitimate democratic functions and should not automatically be treated as threats to national interest.
Committee to Submit Report
The 31-member Joint Parliamentary Committee is headed by BJP MP Sanjay Jaiswal. It was constituted after the proposed legislation faced protests from opposition parties and concerns from religious and civil society groups. The committee is expected to examine the bill’s individual provisions, hear different stakeholders and assess its implications for NGOs, charitable institutions, educational bodies, research organisations and religious institutions receiving foreign contributions.
Jaiswal has expressed confidence that the committee will submit its report before the Winter Session of Parliament. The committee’s recommendations will be closely watched by India’s voluntary sector. The central challenge will be to create a framework that prevents diversion and misuse of foreign contributions while protecting legitimate charitable work, institutional autonomy and procedural fairness.
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FCRA-Registered NGOs Fall 50%, Foreign Funding Rises to ₹22,974 Crore – India CSR
