India’s Foreign Contribution Law: NGOs

Jim Shannon Excerpts

Wednesday 25th May 2022 Westminster Hall

[Stephen Timms (East Ham) (Lab)]

I beg to move,

That this House has considered the impact of India’s foreign contribution law on NGOs.

I am very pleased to serve under your chairmanship this afternoon, Mr Twigg.

This time last year, India had a devastating covid surge. By 6 May 2021, the country had recorded over 400,000 covid cases. Oxfam India, which was founded in India by the British charity Oxfam, provided urgent supplies and support. It worked with India’s health departments, district administrations and local organisations, and its staff set up oxygen plants, provided ventilators and delivered food to vulnerable communities. India’s Prime Minister, Narendra Modi, was among those who praised the response to the pandemic by civil society organisations, and Oxfam India played a key part in that response.

Yet in January this year, the charity received some very bad news. The renewal of its Foreign Contribution (Regulation) Act licence had been refused; the decision was apparently made last December. The result is that Oxfam India is no longer able to receive funds from abroad. Its annual income will fall from around €15 million to €2.1 million; at least 11 of its 15 development projects will close; and its former reach of over 1.5 million people, mainly Dalits, indigenous populations, minorities, women and girls, will be drastically cut. No explanation for this decision has been given.

Charities and non-governmental organisations in receipt of foreign funding in India must be registered under the Foreign Contribution (Regulation) Act 2010—the FCRA—which regulates how foreign funding can be received. Charities and NGOs now need to operate through a designated FCRA account at the State Bank of India’s main branch in Delhi. According to Christian Solidarity Worldwide, local human rights monitoring groups say the purpose of that is to supervise and monitor NGOs’ activity. The Act now gives the Government huge powers to inquire into what NGOs are doing, each time putting their work on hold until the inquiry is complete.

[Jim Shannon (Strangford) (DUP)]

I congratulate the right hon. Gentleman on securing this debate. On 6 January this year Members highlighted another charity, the Missionaries of Charity, who were reinstated some days after the debate. Organisations such as Oxfam, Greenpeace and Compassion are also affected. Some of the NGOs are of Christian heritage and some have a Muslim background. Some 250 Hindu NGOs have been closed because they are anti-Government. Does the right hon. Gentleman agree with me that this is an early warning bell of increased human rights abuses in India? It harms India’s poorest and is a symptom of the continuing pressure from Hindu nationalism.

--- Later in debate ---

[The Minister for Asia and the Middle East (Amanda Milling)]

Thank you, Mr Twigg. Fortunately, I wrote down the time that we started, so I have had an eye on what time I need to sit down. It is a real pleasure to serve under your chairmanship, and I thank the right hon. Member for East Ham (Stephen Timms) for securing the debate. I also thank hon. Members who have contributed to it. It is always a pleasure to see the hon. Member for Strangford (Jim Shannon)—I think we have been in this Chamber several times over the last couple of days—and the hon. Member for Manchester, Gorton (Afzal Khan), and I will address some of the points that have been raised.

It is important to start by saying that the Government firmly believe that a vibrant civil society is central to any democracy. NGOs and civil society organisations in the UK and overseas make huge contributions by holding Governments to account and promoting respect for human rights. The Government support and work with a wide range of NGO partners through our programmes around the world, including in India. India is the world’s largest democracy, and it has a proud democratic tradition and a history of inclusive government. As with all democracies, we look to work with the Government of India to uphold their democratic values, norms and principles.

The Foreign Contribution (Regulation) Act, which is otherwise known as FCRA for the benefit of brevity, regulates how NGOs and other civil society organisations can receive foreign funding for their programmes and activities in India. Versions of the legislation have been in force since 1976. It was amended by the previous Government of India in 2010, and by the current Government of India in 2020. Any NGO that receives foreign funding now needs to apply for a FCRA registration number and renew its registration every five years. Since the FCRA was last amended, a number of NGOs have had their applications to renew foreign funding licences rejected, and I will talk about the number of cases in a moment. They include organisations with which we work directly, and it has had a significant impact on their ability to operate. As has been mentioned, some organisations, such as Missionaries of Charity, have succeeded in having their registration restored, but others have not. The UK’s strong and growing partnership with the Government of India enables us to discuss concerns where we have them. We continue to believe that NGOs make a vital and positive contribution to society. As with all countries, we will always welcome more progress on these issues.

Through the British high commission in New Delhi, we monitor developments relating to the Foreign Contribution (Regulation) Act. In particular, we look out for any impacts on UK Government-funded programmes and the work of British NGOs in India. We talk to the NGOs affected and encourage them to seek recourse, including through the Indian courts, where it is appropriate. We have also raised their cases with the Indian Government directly, at ministerial and senior official levels. That includes the issues faced by Oxfam India, the recent cancellation of the foreign funding licence of the Commonwealth Human Rights Initiative, whose headquarters are in Delhi, and the freezing of Amnesty International India’s bank accounts.

As mentioned by the right hon. Member for East Ham, in February the Home Office permanent secretary raised difficulties facing Oxfam India with his Indian counterpart, during our home affairs dialogue.

[Jim Shannon]

This has been a week where we have been regularly in debates, as the Minister knows. The figures are that 12,580 NGOs had their licences revoked. That is reaching almost epidemic proportions. Has the Minister had a chance to oversee that number of organisations? If so, is there a programme of trying to address all those 12,580 NGOs that have had their licences revoked? I do not expect an answer today.

[Amanda Milling]

The hon. Gentleman is passionate on so many different issues, particularly defending freedom of religion or belief. Regarding the number he referred to, we do raise cases with the Government of India directly. I would happily pick this up after the debate and write to Members.

[Jim Shannon]

All three of us.

[Amanda Milling]

I will.