FCRA legislation will apply to all faiths equally, bolster transparency: Indian Ambassador to US Vinay Kwatra

India's Ambassador to the US, Vinay Kwatra, has actively sought to dispel what he described as misperceptions surrounding proposed amendments to the Foreign Contribution Regulation Act (FCRA). His statements on X (formerly Twitter) come amid criticism from some US lawmakers and civil society groups, and as India's Parliament is expected to discuss and vote on the FCRA Amendment bill this week.

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In reality, foreign money inflows into India have been rising, not falling. Foreign contributions to registered organisations grew from roughly $1.2 billion in 2010–11 to $2.67 billion in 2024–25. India has over 3 million NGOs. A bare fraction of these, only 14,450, hold FCRA registration. Thus, the overwhelming majority of the civil society organizations are entirely outside the Act.

Kwatra asserted that India's FCRA legislation mirrors similar regulations in other countries aimed at controlling the flow of foreign funds. He highlighted that foreign contributions to Indian organizations have nearly doubled over the past 15 years, rising from approximately $1.2 billion in 2010-11 to $2.67 billion in 2024-25. He specifically repudiated allegations of religious discrimination, such as those made by US Congressman Riley Moore, who characterized the changes as an "attack on Christians." Kwatra stressed that the proposed legislation would be applied uniformly across all religious groups.

Concerns have been raised by various groups, including India's Catholic Bishops' Conference, about the potential for foreign contributions and assets of civil society or religious organizations to be permanently seized if they fail to renew their FCRA license. These anxieties have resonated internationally, with reports indicating that several US-based Christian groups and lawmakers have taken up the issue.

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FCRA does not stop anyone from accepting foreign charity, research grants or humanitarian aid. It asks three things, register, receive the money through laid down process, report what you did with it.

In his series of posts, Kwatra explained that India has had an FCRA in place since 1976, with updates in 2010. He clarified that the act's intention is not to halt foreign funding, as evidenced by the rising inflows. Out of India's over 3 million NGOs, only 14,450 are FCRA registered, meaning the vast majority operate outside the act's purview. Kwatra emphasized that FCRA does not prohibit accepting foreign charity, research grants, or humanitarian aid but requires registration, adherence to a defined process for receiving funds, and reporting on their utilization. He also addressed concerns about asset seizure, noting that provisions for vesting assets in state government authorities upon license cancellation have existed since 2010. The proposed 2026 bill aims to clarify procedures for safeguarding these assets and provides a pathway for restoration if an organization regains its registration.

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When a registration is cancelled or surrendered, foreign contributions and the assets created from them already vest in a State Government authority. This has been in force since 2010. It is not new. What the 2026 Bill adds is a designated authority to safeguard those assets, and a way back.