India’s Ambassador to the U.S., Vinay Mohan Kwatra, stated that the amendments to the Foreign Contribution (Regulation) Act are intended to enhance transparency and ensure that organisations receive funds through an established, formal procedure.
In a series of posts on X on Sunday (August 9, 2026), Mr. Kwatra stated that controlling foreign financial inflows into public and political spheres is a sovereign decision motivated by national security considerations, and he pointed to comparable legislation adopted by the U.S. for this objective.
The United States has enforced the Foreign Agents Registration Act (FARA) since 1938 and the Foreign Account Tax Compliance Act (FATCA) since 2010.
Australia enacted its legislation in 2018, followed by Canada in 2024. The United Kingdom’s framework took effect in July 2025, and the European Union is currently in the process of passing its own measures, he said.
Mr. Kwatra’s post on X was published a few days after a U.S. legislator raised concerns about the FCRA amendments, asserting that they would enable the Indian government to assume control of churches and charitable organizations.
He stated that when a registration is revoked or voluntarily given up, foreign donations and any assets derived from them automatically pass to a State Government authority under a provision that has been in effect since 2010.
The 2026 Bill introduces a specific authority responsible for protecting these assets, as well as a mechanism for their return. If the organisation’s registration is reinstated, all assets and any unspent funds are fully restored, Mr. Kwatra said.
Religious sites have their own safeguards. When a cancelled association has created property linked to a place of worship, that property is transferred to another FCRA-registered organization of the same religion to maintain uninterrupted worship, he said.
The Envoy also rejected concerns that the new law was intended to halt foreign funding for civil society.
Mr. Kwatra stated that tens of thousands of organizations are registered under the FCRA and regularly obtain foreign funding for health, education, disaster relief, research, and humanitarian activities.
He stated that India has more than three million NGOs, yet only a very small portion of them—14,450—possess FCRA registration. “Therefore, the vast majority of civil society organisations fall completely outside the scope of the Act,” Kwatra said.
He said India first enacted FCRA in 1976 and brought in a more modern framework through amendments in 2010.
Mr. Kwatra said the FCRA was further strengthened by amendments in 2016, 2018 and 2020.
“The 2026 Bill and Rules are the next step in the same direction: more transparency, better governance, clearer rules,” he said.
Mr. Kwatra stated that controlling foreign financial inflows into public and political spheres is a sovereign decision motivated by national security considerations.
It is a recognized aspect of contemporary governance in numerous democracies worldwide," he stated.
Mr. Kwatra also rejected claims that the FCRA amendments were aimed at any specific community.
The Act is applied uniformly to all organisations, irrespective of their religion, community, or ideology.
Faith-based welfare initiatives—including religious instruction, upkeep of places of worship, and charitable activities carried out by organisations of any faith—remain eligible to receive foreign funding, he stated.
The FCRA Bill, 2026 aims to authorize the government to establish a "Designated Authority" that will assume control of foreign contributions and any assets generated from them when an organization’s FCRA registration license is cancelled, voluntarily surrendered, or lapses due to non-renewal.
The bill also states that in case of assets that are a place of worship, the Authority must ensure that its religious character is maintained.