Archive · 10 Aug 2026
India's envoy debunks FCRA bill myths amid US lawmakers' concerns
India has a law called FCRA that controls how groups in the country can accept money from other countries.
The government wants to change this law.
Some people in the United States think the changes are unfair and could hurt churches and charities.
India's ambassador to the US, Vinay Kwatra, explained that the changes are not meant to stop donations.
He said the government wants clearer rules and more transparency.
He pointed out that foreign donations to Indian groups have actually grown over the years.
He also said the law treats all religions the same and protects places of worship.
Some American politicians, like Senator James Risch and Congressman Riley Moore, still disagree.
They fear the government could take over churches.
India says decisions about its own laws belong to its Parliament.
India's Ambassador to the US Vinay Mohan Kwatra issued a detailed 'Myth vs. Reality' check on X defending the Foreign Contribution (Regulation) Amendment Bill, 2026.
Kwatra said the bill aims for more transparency, better governance and clearer rules, and does not forbid lawful foreign donations to civil society.
Foreign contributions to registered organisations rose from about $1.2 billion in 2010-11 to $2.67 billion in 2024-25, while only 14,450 of India's over 3 million NGOs hold FCRA registration.
US lawmakers including Senator James Risch and Republican Congressman Riley Moore voiced concerns, with Moore alleging the bill would 'permit government takeovers of churches and religious charities.'
India's foreign ministry called the bill an internal legislative matter; it was introduced in the Lok Sabha on March 25 and may be discussed in Parliament on August 12.
- Who
- India's Ambassador to the US Vinay Mohan Kwatra, foreign ministry spokesperson Randhir Jaiswal, and critical US lawmakers including Senator James Risch and Congressman Riley Moore.
- What
- India pushed back against US criticism of the Foreign Contribution (Regulation) Amendment Bill, 2026 by issuing a myth-busting clarification that the law improves transparency and does not cut off lawful foreign funding.
- When
- Kwatra posted his clarification on X around August 9-10, 2026; the bill was introduced in the Lok Sabha on March 25 and may be discussed in Parliament on August 12.
- Where
- India and the United States, with Kwatra issuing statements on X.
- Why
- To counter what India calls misunderstandings about the bill and defend its aims of transparency and governance, after US lawmakers raised concerns about the impact on civil society and religious groups.
India's government position
US lawmakers' concerns
Impact on religious organisations
India's government position
The bill applies uniformly to all organisations regardless of religion, community or ideology; property linked to a place of worship of a cancelled association would transfer to another FCRA-registered association of the same faith to ensure continuity of worship.
US lawmakers' concerns
Congressman Riley Moore alleged the amendments would 'permit government takeovers of churches and religious charities,' calling the bill 'a clear attack against Christians.'
Effect on foreign funding to civil society
India's government position
The law does not forbid foreign donations; it requires registration, receiving funds through a laid-down process and reporting, and foreign contributions rose to $2.67 billion in 2024-25.
US lawmakers' concerns
Critics and civil society groups say the changes could cut off foreign aid to civil society and impose further restrictions on NGOs and charitable groups.
Internal affairs vs bilateral relationship
India's government position
Legislative matters concerning India are internal affairs decided by Parliament; several nations, including the United States, regulate the flow of foreign funds.
US lawmakers' concerns
Riley Moore said that if the bill proceeds, 'it would be a point of major concern in our bilateral relationship with India.'
- Legislation
- Foreign Contribution (Regulation) Amendment Bill, 2026
- Introduced
- Lok Sabha, March 25
- FCRA history
- First enacted 1976; replaced 2010; amended 2016, 2018, 2020
- Foreign contributions received
- $1.2 billion (2010-11) to $2.67 billion (2024-25)
- NGO landscape
- Over 3 million NGOs in India; 14,450 hold FCRA registration
- US critics
- Senator James Risch and Republican Congressman Riley Moore
- India's response
- Internal legislative affair decided by Parliament
- Comparable laws cited
- US FARA (1938) and FATCA (2010); Australia (2018); Canada (2024); UK scheme (July 2025); EU considering legislation
Sources
Two days after Modi-Vance call, Indian envoy to US defends FCRA Bill with a ‘reality check’
India counters ‘myths’ over FCRA Bill
Indian envoy defends FCRA bill after US lawmaker flags concerns
‘Myths’ around FCRA: Bill aims to improve transparency, not curb foreign funding to NGOs, says India envoy
India's FCRA amendments aim at transparency; US has similar laws: Vinay Mohan Kwatra
Ambassador Kwatra Dispels Myths Around FCRA Bill, Asset Takeover Fears
Better Governance, Clearer Rules: India's Mythbuster On Foreign Funding Bill
