Foreign Funding Rules Not New in India! Italy Expert Explains FCRA History and Need for Transparency

India-Italy relations expert Carlo Lombardi discusses FCRA regulations, foreign funding transparency and the need for government oversight to prevent misuse of international funds

Post Published By: Sreeja Chowdhury
Updated : 13 August 2026, 3:05 AM IST
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New Delhi: Carlo Lombardi, an advisor and senior analyst on India-Italy relations, has stated that regulations regarding foreign funding in India are not a new phenomenon.

The Foreign Contribution (Regulation) Act (FCRA) was first enacted in 1976 during the tenure of the then Prime Minister Indira Gandhi, at a time when the country was under a state of emergency. The law was subsequently made more stringent during the tenure of the UPA government led by Manmohan Singh.

In a special interview, Lombardi emphasized that while non-governmental organizations (NGOs) make positive contributions to humanitarian work, they can also often serve as instruments of foreign policy. Therefore, government oversight of international funding is essential.

We must also bear in mind that the proliferation of technology worldwide has made it much easier to exert such influence. Economic openness facilitates fund transfers through various channels that did not exist previously. From a historical perspective, there is actually nothing new about this.

Emphasizing the need for transparency in foreign funding, Lombardi stated that sovereign governments must ensure foreign funds are utilized solely for their declared objectives, rather than to advance political agendas.

The government needs to know who is providing funds, to whom, and for what purpose. It must also ensure that foreign funds are not misused.

Location :  New Delhi

Published :  13 August 2026, 3:05 AM IST

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