The proposed tightening of norms for receiving foreign funds under FCRA, is much needed.
NGOs often get a free pass to function under the notion of 'social work'. This shields them from the scrutiny they deserve as bodies recieving foreign funds.
Where the money goes needs a trace. NGOs have often been deployed as the extended arm of foreign entities looking to seed unrest in India while maintaining plausible deniability.
The graphic below shows the sheer scale of the non-govt sector in India. The opacity with which these NGOs have operated so far, is being removed.
Transparency should be celebrated if there's nothing to hide.
India accounts for nearly one-third of all NGOs across G20 countries, making it home to by far the world's largest NGO ecosystem.
When millions of entities operate across every state, sector, and issue, scale itself becomes a challenge. Such a vast ecosystem of NGOs makes it easier for external interests to find partners, amplify narratives, and project coordinated campaigns as spontaneous grassroots movements.
Over the years, several strategic projects, from nuclear power and mining to industrial and infrastructure projects, have faced prolonged protests, litigation, and pressure campaigns. The 2014 Intelligence Bureau assessment warned that such disruptions could shrink India's annual GDP growth by 2-3%.
A country with millions of NGOs cannot afford to treat transparency as optional. The larger the ecosystem, the greater the need for safeguards. FCRA reforms are about ensuring that foreign contributions are used for their declared purposes and that activism does not become a vehicle for the organised obstruction of development.