India tightens foreign funding rules for NGOs

The Indian government has introduced a comprehensive set of amendments to the rules governing foreign funding for non-governmental organizations, significantly tightening oversight and compliance requirements. The Union Home Ministry notified the amended Foreign Contribution Regulation (Amendment) Rules, 2026, on Monday, June 22, 2026, introducing a series of new mandates for NGOs seeking to receive overseas donations.

A central change requires organizations to select their specific objectives and operational areas from a predefined government-approved list at the time of registration or renewal. Approved purposes include education, health, culture, religion, economic development, and social welfare. The details of these chosen purposes and the states or union territories where the NGO will operate must be specified on its official registration certificate. Existing associations registered before 2026 have been given a one-year window to update the government with their chosen purposes and geographic areas.

The rules introduce stricter controls on personnel, stating that associations with foreign nationals, other than those of Indian origin, as key functionaries will "ordinarily...