First published on National Herald: https://www.nationalheraldindia.com/opinion/modis-unceasing-war-on-ngos-civil-society-activists
Prime Minister Narendra Modi’s administration has waged a relentless campaign against non-governmental organizations (NGOs) and civil society activists in India, significantly impacting their ability to operate and receive funding. This crackdown, while ostensibly aimed at preventing foreign interference, has raised concerns about its impact on democratic processes and civil liberties.
The government’s actions align with the Financial Action Task Force (FATF) recommendations on preventing the misuse of non-profit organizations for money laundering and terrorist financing. However, critics argue that the implementation of these measures has been disproportionate and potentially misused for political purposes.
Since Modi assumed office, over 14,500 NGOs have been barred from accessing foreign funds, resulting in a dramatic 90% collapse in funding from $2.2 billion in 2018 to $295 million in 2019. The government has employed various tactics, including changes to the Foreign Contribution (Regulation) Act (FCRA) and the use of criminal laws, to tighten control over NGOs.
The FCRA amendments, which align with FATF recommendations on regulating foreign funding, have imposed strict conditions on NGOs. These include limiting administrative expenses to 20% of received funds, prohibiting the redistribution of funds to other NGOs, and mandating that foreign contributions be received only through a designated bank account. While these measures ostensibly aim to enhance transparency and prevent misuse of funds, they have severely restricted the operational capacity of many NGOs.
Paradoxically, while NGOs face increased scrutiny, political parties have managed to exempt themselves from similar FCRA restrictions. Through a series of amendments, including changes to the definition of “foreign source” and the introduction of electoral bonds, political parties can now accept unlimited and anonymous contributions from foreign sources. Modi has consistently portrayed NGOs and civil society activists as conspirators working against national interests, a narrative that has been used to justify the crackdown. This approach has raised concerns about the shrinking space for civil society in India and its potential long-term impact on democratic processes and social development.
The government’s actions, while framed within the context of FATF compliance, have been criticized for going beyond the scope of preventing financial crimes and potentially infringing on fundamental rights and freedoms. The disproportionate impact on NGOs compared to other sectors, such as the corporate world or political parties, has further fueled these concerns.
