A substantial number of non-governmental organizations (NGOs) registered under the Foreign Contribution (Regulation) Act, 2010, are inactive, with over 72% having had their licenses canceled or expired. Since the inception of the act in 2012, 52,159 licenses have been granted, but only 14,455 remain active, allowing these organizations to receive foreign funding. This regulatory tightening is aimed at improving accountability and transparency within the sector. The increase in scrutiny comes as the government seeks to ensure that foreign contributions do not compromise national interests. The significant decline in operational NGOs raises questions about the capacity of these organizations to function effectively and serve their intended beneficiaries.
Why It Matters
The decline in active NGO licenses highlights the government’s efforts to regulate foreign funding and enhance oversight to prevent misuse. Historically, the Foreign Contribution (Regulation) Act has undergone several amendments to strengthen compliance measures. The reduction from over 52,000 to approximately 14,000 active NGOs reflects the impact of stricter regulations aimed at ensuring that these organizations operate transparently and responsibly. This trend raises concerns about the availability of funding for social and developmental initiatives, as many NGOs play a crucial role in addressing various societal issues.
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