"Over the past couple of years we've seen, frankly, a number of foreign-funded NGOs who have encountered significant challenges to continuing their operations, and it's something we're watching and it's something we're going to engage with the Indian Government on and try to find a way forward," State Department Acting Spokesman Mark Toner told reporters during a conference call.
At the same time, he said, the United states has a very strong bilateral relationship with India.
The Indo-US relationship was one in which the two sides can talk about all the issues they agree on as two strong democracies, but also can share their concerns, he noted.
"It speaks to our concerns more broadly about civil society and its ongoing vibrancy and health, and the fact that we will always advocate for freedom of expression and association around the world," he said.
Toner asserted that the US has seen that a number of foreign-funded NGOs over the past couple of years have encountered similar problems and so it remains a concern for it.
Compassion International on March 1 announced that it will close down its operations in India on March 15.
The decision to close its India operations impacts nearly 147,000 babies, children and young adults currently registered in Compassion's child development programmes, as well as 127 staff, the NGO said in a statement.
(Reopens FGN 15)
The NGO alleged that in May, 2016, Ministry of Home Affairs began blocking Compassion from sending money to its two country offices and 589 church partners throughout the country.
Last summer, former Secretary of State John Kerry spoke with Indian officials on behalf of Compassion, the NGO said. However, the Indian government has not lifted its restrictions, it said.
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