India's Ministry of Home Affairs has proposed major amendments to the Foreign Contribution (Regulation) Act to tighten control over foreign funding [1, 2].

These changes significantly impact the operational capacity of civil society by increasing the government's ability to freeze assets and restrict the flow of international grants. The measures target NGOs, charitable trusts, educational institutions, and religious organizations that rely on overseas financial support [2, 3].

The Ministry of Home Affairs adopted the amendment rules on June 22, 2026 [1]. Under the new proposal, the government would impose stricter compliance requirements on all entities receiving foreign contributions. A key feature of the amendments is the creation of a designated authority tasked with managing foreign-funded assets if an organization's registration is cancelled, surrendered, expires, or is not renewed [2, 3].

Government officials said the changes are necessary to protect national security and prevent the misuse of foreign contributions by civil-society organizations [1, 3]. The state aims to ensure that international funds are not used for activities that could undermine internal stability, a move the government links to national security interests [1, 3].

Critics and human rights organizations have expressed concern that these rules could be used to undermine civil society. By tightening the requirements for registration and renewal, the state gains more leverage to determine which organizations can legally operate with international backing [1].

“India's Ministry of Home Affairs has proposed major amendments to the Foreign Contribution (Regulation) Act”

The proposed FCRA amendments represent a shift toward more centralized control over the third sector in India. By establishing a mechanism to seize or manage assets of non-compliant NGOs, the government increases the financial risk for international donors and domestic recipients. This creates a regulatory environment where the legal status of an organization is tied directly to its adherence to government-defined security standards, potentially narrowing the space for independent advocacy.