Datanomics: How the govt is tightening its grip on foreign funding

The government has intensified its scrutiny of organisations receiving foreign funding under the Foreign Contribution (Regulation) Act (FCRA), resulting in a substantial number of licence cancellations in recent years. This intensification has sparked widespread concerns among civil society groups, non-governmental organisations, and policy institutions, many of which now face mounting regulatory challenges in securing or renewing FCRA approvals.

 

A deeper analysis of data from the annual reports of the Ministry of Home Affairs reveals a shifting regulatory approach.

 

In 2019-20, the approval rate for FCRA renewals stood at a mere 41.2 per cent, with denials reaching 53.3 per cent. This trend reversed in 2020-21, when approvals surged to 76.3 per cent, while denials dropped to 22.4 per cent. 

 

Data for 2021-22 remains incomplete, as denial figures were not disclosed.

 

The following year, 2022-23, saw a spike in approvals to 97.9 per cent, with denials at an all-time low of 2.1 per cent.

 

However, 2023-24 marked a stark shift, with approvals declining to 75.8 per cent and denials rising sharply to 24.2 per cent, indicating a reinforced regulatory grip despite the increased number of processed applications.

 

In absolute terms, 2023-24 witnessed the highest number of FCRA renewal applications disposed of — 8,306 — comprising 6,293 approvals and 2,013 denials.

 

While this confirms an uptick in regulatory scrutiny, it also shows that the government processed an unprecedented volume of applications in this period.

 

Notably, 2023-24 recorded the highest number of denials in absolute terms.

 

Several prominent institutions have lost their FCRA licences over the past year, raising concerns about the broader implications for policy research, advocacy, and civil society engagement.

 

Among the organisations affected are the Commonwealth Human Rights Initiative, Oxfam India, the Centre for Policy Research, and the Centre for Equity Studies. These groups have been involved in governance analysis, human rights, and social justice initiatives.

 

A broader look at FCRA application disposals for 2023-24 illustrates a pattern of heightened scrutiny across different service categories. 

 

While renewal applications saw 6,293 approvals and 2,013 denials, new registrations recorded 1,209 approvals against 945 denials.

 

Prior permission applications saw the lowest approval rate, with only 39 approvals and 257 denials.

 

Hospitality-related applications were met with more leniency than others, with 3,912 approvals against 471 denials. 

 

Meanwhile, change of committee member requests faced intense scrutiny, with approvals (4,185) nearly equalling denials (4,162), suggesting an increased focus on organisational governance.

 

According to the Ministry of Home Affairs’ dashboard, 16,123 FCRA licences remain active as of March 23, while 20,717 have been cancelled and 14,965 are classified as expired.