Non-governmental organisations are facing a progressively difficult time in India. The Foreign Contribution (Regulation) Amendment Bill of 2026 pushes NGOs even more towards the government control that had become obvious in the 2020 amendments. The bill allows the government to appoint a designated authority to take control of an NGO’s foreign funds and assets if its registration is cancelled, surrendered or ceases to exist. This authority shall then manage and dispose of the assets as it sees fit. As foreign funds are often used to build infrastructure such as schools and hospitals, this condition increases the existing uncertainty and fear of regulations for NGOs, while overseas donors may hesitate to contribute since it is possible that assets created for people who need them may be seized by the government. The condition would also apply to assets partially using foreign funds — NGOs
often mix their resources. Civil society organisations try to address the needs of specific groups
of people and protect their rights. Continued
pressure on them is a symptom of a shrinking democratic space.

All NGOs must be compliant with government regulations, but it is a different matter when the State moves towards intervention and control. The FCRA amendments of 2020 were a big step in that direction. For example, one provision prohibited the transfer of foreign funds to smaller NGOs, which could squeeze them out of existence. This goes against the right of association and prevents collaboration in positive action. Another capped administrative expenses from foreign funds at 20%, reducing it drastically from 50%, thus interfering with the organisations’ internal matters and hampering administration. The government’s focus is on foreign funds. That using them may invite the label of — and penalty for being — ‘anti-national’ caused fear and hesitation in working for human rights, depriving support for those who needed it. Foreign contributions would have to be deposited in accounts made at a State Bank of India branch, which caused untold difficulties for NGOs working in remote areas. Since the Bharatiya Janata Party-led government came to power, more than 20,000 NGOs have had their FCRA licences cancelled. The 2026 amendment, if passed into law, would exacerbate the draconian aspect of the FCRA, which had already been criticised in 2020 for violating international and constitutional principles guarding the functioning of civil society organisations in a democracy.