India Defends FCRA Amendments Against US Criticism

India’s ambassador to the United States, Vinay Mohan Kwatra, has launched a public defense of the proposed Foreign Contribution (Regulation) Amendment Bill 2026, rejecting claims that the legislation aims to restrict civil society or target religious groups and framing the changes as necessary steps toward modernizing national governance.

Editorial·August 10, 2026·reads: 376

The ambassador took to social media to categorize concerns surrounding the bill as misunderstandings, asserting that the regulation of financial flows is a standard exercise of sovereignty. Kwatra highlighted that the 2026 bill builds upon a regulatory history dating back to 1976, aiming specifically to increase transparency and streamline reporting requirements. He noted that foreign contributions to registered Indian organizations have grown from $1.2 billion in 2010-11 to $2.67 billion in 2024-25, arguing that the law facilitates rather than hinders humanitarian and research efforts.

Addressing fears regarding asset seizure, Kwatra explained that the bill introduces a designated authority to manage assets of organizations whose registration is canceled, with a legal path for these assets to be returned if registration is restored. He emphasized that property linked to places of worship would be transferred to other associations of the same faith to ensure continuity. The diplomat also dismissed the notion that India is an outlier, pointing to similar foreign agent and financial transparency legislation in the US, Australia, Canada, and the UK. This pushback follows sharp criticism from US lawmakers, including Senator James Risch and Congressman Riley Moore, who warned that the bill could negatively impact religious organizations. India’s foreign ministry maintains that the bill is an internal legislative matter.