India has firmly clarified that the proposed amendments to the Foreign Contribution (Regulation) Act (FCRA) are a matter of its sovereign legislative process and do not warrant external commentary. The response came after US Congressman Riley Moore expressed concerns over the proposed changes to India’s FCRA framework, prompting India to reiterate that the country’s domestic laws are decided by its Parliament in accordance with national interests, not by a US Congressman.
MEA spokesperson Randhir Jaiswal said, “We have seen the comments on FCRA. Legislative matters concerning India are our internal affairs on which decisions are taken by the Parliament of the country. I would also like to point out that there are several nations, including the United States, which regulate the flow of foreign funds.”
Ministry of External Affairs (MEA) stated that matters relating to India’s internal legislation fall exclusively within the jurisdiction of the Indian government and Parliament. The Indian government emphasised that the FCRA is designed to ensure transparency and accountability in the receipt and utilisation of foreign funds by individuals, associations, and non-governmental organisations (NGOs).
The proposed Foreign Contribution (Regulation) Amendment Bill seeks to strengthen oversight of foreign funding while simplifying compliance procedures for genuine organisations. The objective of the bill is to prevent misuse of foreign contributions for activities that may be detrimental to India’s sovereignty, security, public order, or strategic interests, while allowing legitimate charitable and developmental work to continue unhindered.
India has consistently maintained that every sovereign nation has the right to regulate the inflow of foreign funds in accordance with its own legal framework. The government argues that many democratic countries, including the United States and several European nations, have stringent laws governing foreign funding and foreign influence in domestic affairs. Therefore, similar regulations in India should be viewed through the lens of national security and financial transparency rather than political considerations.
The FCRA was originally enacted in 1976 and substantially revised in 2010 to regulate the acceptance and utilisation of foreign contributions. In 2020, Parliament introduced significant amendments that tightened compliance requirements, prohibited the transfer of foreign contributions to other organisations, reduced the administrative expense limit, and mandated that all FCRA accounts be maintained at a designated branch of the State Bank of India in New Delhi.
The latest amendment proposal has sparked debate among activists availing foreign funds. The Indian government has been clear that the law does not prohibit foreign donations but merely establishes a transparent regulatory framework to ensure that such funds are used for their declared purposes. SO why is this transparency hurting so many people?
Meanwhile, India has clearly conveyed that external opinions on its legislative process are unnecessary and that decisions concerning the FCRA will be taken solely by the elected representatives of the Indian people. The government underscored that safeguarding national interests while promoting transparency remains the guiding principle behind the proposed amendments.
