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The Economic Times
The Economic Times
Business

FCRA 2026: Three regulatory changes reshaping foreign funding in India

The Foreign Contribution (Regulation) Act 2010 (FCRA) is a central feature of the regulatory framework governing India's non-profit sector. It regulates the acceptance and utilisation of money and goods received from foreign sources, and the terms and purposes on which they may be used. The framework is founded on a simple principle: an organisation may accept foreign contribution only if it holds FCRA registration or prior permission, and only if those contributions are applied to activities that the State does not regard as detrimental to national interest.

This framework is now being reshaped by two parallel developments. The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on 25 March 2026 and awaits Parliamentary approval. Separately, the revised Foreign Contribution (Regulation) Amendment Rules, 2026 were notified on 22 June 2026 and are already in force.

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