Indian Government Defends Foreign Funding Regulation Amendments Citing Global Laws

NEW DELHI: Ahead of Parliament taking up the Foreign Contribution Regulation (Amendment) Bill, 2026, govt cited comparable laws regulating foreign funding, influence and lobbying in the US, UK, Australia and Canada to underline the "globally recognised" concern that "foreign money, when unregulated, can affect democratic institutions, electoral processes and public discourse". In a backgrounder on FCRA issued Wednesday, MHA said regulating foreign contributions and influence was "not a uniquely Indian approach", with leading democracies strengthening such frameworks over the past decade. The ministry cited the US Foreign Agents Registration Act (FARA), requiring registration and disclosure for those acting on behalf of a "foreign principal" in political activity or lobbying, and the UK's 2025 Foreign Influence Registration Scheme, which provides for up to two years' jail for political influence arrangements with a foreign power. It added that the EU has proposed transparency registers in member states for lobbying on behalf of non-EU govts. Rejecting the claim FCRA "bans" NGOs from receiving foreign funds, MHA said 16,200 associations were actively registered in 2024-25 and received Rs 22,963 crore in foreign contributions. It denied that FCRA targeted any religion or community, saying faith-based welfare activities remain eligible for foreign funding. On the proposed FCRA amendment allowing govt to seize assets of delisted NGOs, govt said the designated authority would manage assets created from foreign funds only after an organisation's FCRA registration lawfully ceases. Places of worship would retain their religious character, it said, while noting the provision for appeal. The ministry said restricting foreign nationals from key roles in FCRA-registered entities ensures foreign contributions are governed by persons with a verified connection to India. On mandatory Central approval for state-level FCRA investigations, it said FCRA is a central law. "FCRA... ensures that foreign money enters India through a registered, accountable and disclosed channel... while enabling thousands of organisations to carry out legitimate, impactful work."