Foreign funding regulation is a growing global trend, not an Indian exception.

Q. "Foreign funding regulation is a growing global trend, not an Indian exception." Examine. (15 marks, 250-350 words)

Laws requiring disclosure of foreign funding are today a common feature of democracies, driven by concerns over covert external influence on domestic politics. India's Foreign Contribution (Regulation) Act, 2010 — administered by the Ministry of Home Affairs and rooted in a 1976 statute — belongs to this wider family, though its design and application invite scrutiny [1].

The global trend is well established - The United States pioneered the model with the Foreign Agents Registration Act, 1938, mandating registration of persons acting for foreign principals [1]. - Australia enacted a Foreign Influence Transparency Scheme (2018); Canada followed with the Foreign Influence Transparency and Accountability Act (2024) [1]. - The United Kingdom operationalised its Foreign Influence Registration Scheme in July 2025, and the European Union has proposed a directive on foreign-interest transparency [1].

India's FCRA fits the pattern - FCRA is a registration-and-disclosure regime, not a prohibition — it defines eligible recipients, mandates a single designated FCRA account at SBI's New Delhi Main Branch, and requires annual returns [1][2]. - The 2020 amendment cut the administrative-expenditure cap from 50% to 20% and barred public servants from receiving foreign contributions [2]. - The 2026 Rules require project-wise utilisation and ultimate-donor disclosure, curbing round-tripping; the FCRA 2.0 Portal (June 2026) digitised applications and returns [1][3]. - Scale remains modest: FCRA-registered bodies are under 1% of India's NGOs, receiving about Rs 22,963 crore in 2024-25 [1].

Yet the analogy is not complete - FARA-type laws target lobbying for foreign principals; FCRA covers welfare and development funding more broadly. - Civil society has flagged compliance burdens and licence non-renewals; the 2026 Bill responds by adding appeal to a District Judge, requiring central approval before State-agency probes, and reducing maximum imprisonment from five years to one [1].

Thus India is part of a genuine global convergence on foreign-funding transparency rather than an outlier. The task ahead is calibration — narrowly-drawn security triggers, time-bound decisions and reasoned orders — so that sovereignty is protected without weakening the associational freedom that Article 19(1)(c) guarantees.

(~330 words)

Sources: 1. Foreign Contribution (Regulation) Act — FAQs, PIB Backgrounder (22 July 2026) — FCRA's scope and history, international comparators (FARA, Australia, UK, Canada, EU), 2026 Bill and Rules, registration and funding data 2. The Foreign Contribution (Regulation) Amendment Bill, 2020 — PRS Legislative Research — designated SBI FCRA account, 20% administrative-expense cap, public servants as prohibited recipients 3. Shri Amit Shah launches FCRA 2.0 Portal and e-OCI Card, PIB (30 June 2026) — digitisation of FCRA applications, renewals and returns