What is the FCRA Bill? Why Is the US Angry with India?

India plans stricter FCRA rules to increase checks on foreign funding, sparking debate over NGO freedom, religious organisations and national security.

After the NEET protests, the Foreign Contribution (Regulation) Act, or FCRA, has become a topic of discussion. But what exactly is FCRA and why is the government planning changes to it?

FCRA is an Indian law that regulates foreign donations received by NGOs, organisations and other entities in India. Organisations that want to receive foreign funds must register under the FCRA with the Ministry of Home Affairs and report how the money is received and used.

The government says FCRA is necessary to ensure that foreign money is not misused. It has previously taken action against several organisations over alleged violations of FCRA rules. However, organisations and rights groups have also raised concerns that the law can be used to restrict legitimate NGO activities.

The government is now considering stricter FCRA rules. These may include tougher conditions for registration and renewal, more details about foreign funds, greater powers to suspend or cancel registrations, and action against organisations accused of serious violations.

The proposed changes have also attracted criticism from some people in the United States. US Congressman Riley Moore described the move as a “clear attack against Christians”, while some Christian leaders in India have asked the government to ensure that the new rules do not discriminate against Christian organisations.

The debate has also highlighted the difference between India and the US. The United States has its own Foreign Agents Registration Act, or FARA, which requires certain organisations working with foreign governments or foreign principals to disclose their activities and funding.

The government argues that stronger rules are needed to ensure transparency and prevent misuse of foreign funds. Critics, however, say the rules must protect genuine NGOs and religious organisations while maintaining national security and financial transparency.