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GS Paper: NGO, SHG & Civil Society

  • How grassroots movements and campaigns are shaping India

    INTRODUCTION

    India’s development story is incomplete without recognising the individuals, communities and voluntary organisations working at the grassroots who transform adversity into resilience. Through examples from Subroto Bagchi, Bela Bhatia, and other chroniclers of grassroots India, the article illustrates how local aspirations, bottom-up leadership, and rights-based activism challenge structural inequalities and drive social transformation. These experiences expose gaps in State capacity while showcasing how community-driven initiatives produce sustainable, inclusive models of development.

    WHY IN THE NEWS

    Grassroots movements are in focus because recent literature, from Subroto Bagchi’s The Day the Chariot Moved to Bela Bhatia’s India’s Forgotten Country and Jayapadma R.V.’s Anchoring Change, documents the lived realities of India’s marginalised communities with unprecedented detail. These books reveal striking facts: India’s 96% unorganised workforce, only 2% formally skilled youth under 30, and deepening wage disparities despite economic growth. The narratives demonstrate how individuals like Nunaram Hansda and Muni Tigga overcome systemic barriers, and how activists expose entrenched caste, gender, and tribal injustices. The scale of these challenges, combined with inspiring micro-successes, makes the current wave of grassroots documentation a critical moment for rethinking India’s development model.

    What drives grassroots transformation in India?

    1. Human Stories as Development Indicators: Lived experiences of individuals reveal how opportunity and support systems create upward mobility.
    2. Persistent Structural Barriers: Stereotypes, bureaucratic sloth, corruption, and political inertia undermine access to education, health, and employment.
    3. People-Led Leadership: Many government servants and community workers defy systemic limitations to deliver results, becoming catalysts of local change.

    How does Odisha’s grassroots skilling experience illustrate systemic change?

    1. Scale of Engagement: Bagchi travelled 3,000 km across 30 districts in 30 days to assess ground realities, highlighting the importance of proximity to people for effective policy.
    2. Skill Crisis in India: With 96% of India’s workforce in the unorganised sector, and only 2% formally skilled youth, grassroots skilling becomes central to development.
    3. Personal Transformation as Social Capital: Stories like Muni Tigga, who travelled 37 km daily for wages before becoming an ITI-trained loco pilot, show skilling as empowerment.
    4. Nano-Unicorns: Bagchi’s concept of “nano unicorns” captures how individuals with basic resources but strong intent can transform their lives through new skills.

    How do grassroots narratives expose inequalities and violence?

    1. Caste and Tribal Oppression: Bela Bhatia’s work reveals untouchability, caste massacres, bonded labour, and routine violence against Dalits and Adivasis across States.
    2. Conflict and Displacement: Her documentation of Maoist-State conflict in Bastar exposes how communities face both insurgent and State excesses.
    3. Gendered Violence and Social Vulnerability: Widows, bonded labourers, and women in tribal regions face routine brutality, which grassroots activism brings to attention.
    4. Invisible Suffering: These accounts highlight the “real India”, hunger, widowhood, communal discrimination and armed oppression that rarely enters mainstream policy narratives.

    How do civil society organisations shape alternative models of development?

    1. Voluntary Organisations as Drivers: Works like Grassroots Development Initiatives in India show how NGOs empower marginalised communities through rights-based frameworks.
    2. Reframing Development: Civil society corrects narrative asymmetry by shifting discourse from failure to micro-successes and replicable design principles.
    3. Community-Based Innovations: Grassroots Innovation Movements shows diverse local innovations emerging across India, South America, and Europe.
    4. Alternative Governance: These movements challenge centralised, technocratic models and emphasise participation, dignity, and sustainability.

    What lessons do 75 years of grassroots interventions offer?

    1. Micro-Successes Matter: Anchoring Change argues that hidden successes across sectors demonstrate scalable principles for future development.
    2. Civic Action as Corrective Force: Grassroots interventions often succeed where State mechanisms fail, especially in reaching the marginalised.
    3. Sustainable Development Principles: Design principles such as local participation, contextual solutions, and trust-building emerge repeatedly.
    4. Relevance for India’s Future: These examples underline the need to integrate grassroots wisdom into policy design and leadership structures.

    CONCLUSION

    The collective narratives of grassroots India reveal a profound truth: systemic change does not always originate in government offices or corporate boardrooms. It emerges from forests, hamlets, slums, and skill centres where individuals confront injustice, inequality, and adversity every day. By documenting these experiences, writers and activists show that India’s development depends not just on economic indicators but on human dignity, justice, and opportunity. These stories emphasise that a resilient, equitable future for India must recognise and elevate grassroots leadership.

    Defining Grassroots Movements (Scholarly Grounding)Charles Tilly (Scholar of Social Movements)

    • “Grassroots activism involves sustained, organised public efforts that emerge from ordinary people rather than elites or formal institutions.”
    • Relevance: Highlights movements in Odisha, Bastar, Dalit-Adivasi regions driven by ordinary citizens.

    Paulo Freire-Pedagogy of the Oppressed

    • He describes grassroots mobilisation as the process through which the oppressed develop critical consciousness and challenge unjust systems.
    • Relevance: Bela Bhatia’s work with oppressed communities mirrors Freire’s idea of conscientisation.

    Partha Chatterjee-“Politics of the Governed”

    • Grassroots activism represents the “politics of the governed,” where marginalised groups negotiate with or resist State power.
    • Relevance: Movements against caste atrocities, displacement, bonded labour.

    Rajni Kothari-People’s Movement

    • Grassroots movements arise when institutions fail to address social justice.
    • Relevance: Odisha’s skilling push, Maoist conflict areas, Adivasi rights struggles

    Andre Béteille-Inequality and Social Structure

    • Grassroots actions are essential because institutions reflect the inequalities they are meant to correct.
    • Relevance: The article’s reflections on caste discrimination, tribal exploitation, gendered violence.

    Examples of Grassroots Movements & Campaigns in India

    These examples strengthen UPSC answers while complementing the themes in the article.

    1. Chipko Movement (Uttarakhand)
      1. Women-led forest protection campaign
      2. Classic example of community ownership, ecological consciousness
    2. Narmada Bachao Andolan (MP-Gujarat-Maharashtra)
      1. Medha Patkar leading displaced communities
      2. Connects with Bela Bhatia’s narratives on displacement & state-people conflict
    3. Mazdoor Kisan Shakti Sangathan (MKSS), Rajasthan
      1. Led to the creation of RTI Act
      2. True example of local transparency movement and aligns with themes of accountability in article
    4. Kudumbashree (Kerala)
      1. Women SHG-based poverty alleviation network
      2. More than 40 lakh women empowered and parallels female empowerment stories in article
    5. Tribal Movements in Bastar & Niyamgiri
      1. Dongria Kondh agitation
      2. Protecting land rights, forests, identity  connects directly to Bela Bhatia’s activism
    6. Self-Employed Women’s Association (SEWA)
      1. Informal sector women organising for rights
      2. Links to the article’s data: 96% of India’s workforce is unorganised
    7. The Right to Food Campaign (Rajasthan-Jharkhand)
      1. Led to legal recognition of the Right to Food (NFSA 2013)
      2. Resonates with themes of hunger, vulnerability, and social security
    8. Swachhagrahis under Swachh Bharat
      1. Local foot-soldiers transformed sanitation at the community level
      2. Example of modern grassroots mobilisation within state systems
    9. Pani Panchayats (Maharashtra)
      1. Community-led water management
      2. Echoes idea of “nano unicorns” where local solutions lead to large impact
    10. Digital Empowerment Foundation (DEF)
      1. Works in digitally dark villages
      2. Links to article’s emphasis on digital divide & skilling

    Why Grassroots Movements Matter 

    1. They resolve governance gaps: Where bureaucracy fails, community institutions fill the vacuum.
    2. They build social capital: According to Putnam: “Networks of civic engagement improve societal efficiency.” Grassroots campaigns strengthen trust, cooperation, and shared goals.
    3. They decentralise democracy: True meaning of 73rd and 74th Constitutional Amendments.
    4. They reveal the “invisible India”: Tribal women, bonded labourers, landless farmers 
    5. They catalyse policy innovation: Many national laws (RTI, FRA 2006, NFSA) emerged from grassroots struggles.
    6. They humanise development: Bagchi’s writing makes abstractions like skilling or growth felt through human narratives.

    PYQ Relevance

    [UPSC 2021] Can Civil Society and Non-Governmental Organizations present an alternative model of public service delivery to benefit the common citizen? Discuss the challenges of this alternative model.

    Linkage: Grassroots movements in the article show how civil society delivers services where the State falls short, making this PYQ directly relevant. The topic is important because India’s governance gaps increasingly require community-led, bottom-up models to ensure inclusion and accountability.

  • National Cooperation Policy (NCP), 2025

    Why in the News?

    The National Cooperation Policy (NCP) 2025 recently unveiled by Union Home and Cooperation Minister Amit Shah has drawn criticisms from SKM (Samyukt Kisan Morcha).

    Also in news:

    • The Union Cabinet has also approved a ₹2,000 crore Central Sector Scheme to aid National Cooperative Development Corporation (NCDC) from 2025–26 to 2028–29.
    • NCDC was established in 1963 as a statutory Corporation under Ministry of Agriculture & Farmers Welfare (now functions under the Ministry of Cooperation since 2021).

     

    About Cooperatives in India:

    • What is it: A cooperative is a voluntary, autonomous association of individuals who unite to meet common economic, social, or cultural needs through a jointly-owned and democratically-controlled enterprise.
    • Key Principles:
      • One member, one vote: Equal say in governance, regardless of financial contribution.
      • Based on collective benefit, democratic control, and mutual aid.
    • Historical Evolution:
      • 1904 & 1912: Cooperative Acts laid the foundation for the cooperative movement in India.
      • Post-independence: Emphasis on rural credit, dairy, and agriculture cooperatives (e.g., Amul).
      • Key Institutions: NABARD (National Bank for Agriculture and Rural Development), NCDC (National Cooperative Development Corporation).
    • Constitutional & Legal Backing:
      • 97th Constitutional Amendment (2011):
        • Article 19(1)(c): Right to form cooperative societies.
        • Article 43B: Directive Principle promoting cooperative societies.
        • Part IXB (Articles 243ZH to 243ZT): Provides governance framework.
      • MSCS Act, 2002: Governs multi-state cooperatives (under Central Registrar).
      • State List (Entry 32): State legislatures regulate intra-state cooperatives.
    • Scale:
      • India has over 8.42 lakh cooperatives with 29 crore members (~27% of global total).
      • Leading states: Maharashtra, Gujarat, Telangana, MP, Karnataka.
      • Notable cooperatives: IFFCO, Amul — ranked among top 300 cooperatives globally.

    National Cooperation Policy (NCP) 2025:

    • Launch: Introduced by Union Minister Amit Shah on July 24, 2025.
    • Vision: “Sahakar se Samriddhi” — promoting prosperity through cooperatives.
    • Objective:
      • Establish a comprehensive national framework for cooperative growth (2025–2045).
      • Replace the 2002 policy and drive inclusive development through grassroots cooperatives.
    • Key Features:
      • 2 lakh new Primary Agricultural Credit Societies (PACS) in 5 years
      • Scheme convergence: e.g., PM Matsya Sampada Yojana, NPDD
      • Inclusive focus: Women, Dalits, Adivasis, youth
      • Sector expansion: Into 25+ areas—dairy, fisheries, exports, technology
      • Education: First cooperative university—Tribhuvan Sahkari University
      • Export support: Through National Cooperative Exports Limited (NCEL)
      • Digital thrust: Emphasis on digitisation and platform integration

    Issues with NCP, 2025:

    • Federalism Undermined
      • Entry 32: Cooperatives are a State Subject
      • SC Verdict (2021): Centre cannot regulate intra-state cooperatives
      • Criticism: Policy lacks ratification by half the states (Article 368(2))
    • Corporate Entry Fears
      • Emphasis on digital platforms may enable indirect corporatisation
      • Potential marginalisation of small farmers and FPOs
    • Weak Social Inclusion
      • Lacks focus on Minimum Support Price (MSP), surplus sharing
      • No robust support for producer cooperatives or fair wages
      • Inclusion of tribals, Dalits, women remains rhetorical
    [UPSC 2021] With reference to ‘Urban Cooperative banks’ in India, consider the following statements:

    1. They are supervised and regulated by local boards set up by the State Governments.

    2. They can issue equity shares and preference shares.

    3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

    Which of the statements given above is/are correct?”

    Options: (a) 1 only (b) 2 and 3 only* (c) 1 and 3 only (d) 1, 2, and 3

     

  • A comprehensive immunisation schedule for women is ready

    Why in the news?

    FOGSI launched a detailed immunization plan for women in Mumbai, featuring essential vaccines and recommended dosages, presented by women’s health advocate Kajal Aggarwal.

    About the Federation of Obstetric and Gynaecological Societies of India (FOGSI)

    • The Federation of Obstetric and Gynaecological Societies of India (FOGSI) is a prominent professional organization dedicated to advancing the field of obstetrics and gynaecology in India.  
    • Foundation and Scope: FOGSI was established in 1950 and currently represents over 34,000 obstetricians and gynaecologists across India. It serves as a unified platform for healthcare professionals specializing in women’s health.
    • Objectives: The primary objective of FOGSI is to promote the study and practice of obstetrics and gynaecology through education, research, and advocacy. It aims to improve the standards of healthcare delivery for women in India.

    Significance of Preventive Health Care    

    • Early Detection and Intervention: Preventive healthcare emphasizes regular screenings, vaccinations, and health checks to detect potential health issues early. This proactive approach allows healthcare providers to intervene early, often before symptoms appear, which can lead to better treatment outcomes and lower healthcare costs.
    • Promotion of Health and Well-being: By focusing on preventive measures such as healthy lifestyle choices, vaccination against preventable diseases, and routine health screenings, individuals can maintain optimal health and well-being. Preventive healthcare encourages behaviours that reduce the risk of chronic illnesses and promote longevity.
    • Reduction of Healthcare Burden: Investing in preventive healthcare can alleviate the burden on healthcare systems by reducing the prevalence and severity of diseases. By preventing illnesses before they occur or progress, fewer resources are needed for acute care, hospitalizations, and long-term management of chronic conditions.

    Accessing ‘Vulnerable Period’

    • Postpartum Period: The postpartum period, typically defined as the first six weeks after childbirth, is a critical vulnerable period for women. During this time, the body undergoes significant physiological changes, including hormonal fluctuations and potential immune system alterations. These changes can increase susceptibility to infections and other health complications, necessitating close monitoring and appropriate medical interventions.
    • Menopausal Transition: Menopause marks a significant transition in a woman’s life when reproductive hormone levels decline, leading to various physical and psychological changes. This period can be accompanied by symptoms such as hot flashes, mood swings, and changes in bone density. Due to these changes, women may be more vulnerable to conditions like osteoporosis and cardiovascular disease.
    • Chronic Illness Management: Women with chronic conditions such as diabetes, hypertension, or autoimmune disorders may experience periods of vulnerability related to their specific health challenges. Fluctuations in hormone levels, stress, and lifestyle factors can exacerbate these conditions or increase the risk of complications. Healthcare strategies during these vulnerable periods often include personalized treatment plans, regular monitoring, and patient education to optimize disease management and promote overall well-being.

    Conclusion: FOGSI’s launch of a women’s immunization schedule underscores their commitment to advancing women’s health through proactive care, addressing vulnerable periods like postpartum and menopause, and promoting disease prevention and management strategies.

     

    Mains PYQ:

    Q  In order to enhance the prospects of social development, sound and adequate health care policies are needed particularly in the fields of geriatric and maternal health care. Discuss. (UPSC IAS/2020).

  • MHA extends FCRA Registration of NGOs

    Why in the news?

    The Ministry of Home Affairs extended till June 30 the validity of all FCRA registered NGOs whose licences are expiring on March 31.

    What is Foreign Contribution Regulation Act (FCRA)?

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for 5 years and it can be renewed subsequently if they comply with all norms.

    What contributes to Foreign Donations?

    • Foreign Contribution’ means the donation, delivery or transfer made by any foreign source of any:
    1. Article (whose market value is not more than one lakh rupees);
    2. Currency (whether Indian or foreign);
    3. Securities
    • Foreign donations may be those from Governments, international agencies, foreign companies, trusts, corporations, foreign citizens
    • However, some agencies like the UN, World Bank, IMF etc. are EXEMPTED from the definition of foreign donors.

    Who cannot accept donations under FCRA?

    According to the FCRA, foreign donations cannot be accepted by:

    1. Election candidates
    2. Editors and publishers of newspapers
    3. Judges and government employees.
    4. Political parties and members of legislature etc.

    What was the recent Amendment?

    The FCRA was amended in September 2020 to introduce some new restrictions:

    • There is now a capping of the administrative expenses of NGOs at 20% of their foreign donations.
    • The new amendment requires them to have a State Bank of India account at a Delhi Branch.
    • It also prohibits the transfer of grants received under FCRA to any other outfit.
    • It also gives sweeping powers to the Ministry of Home Affairs to cancel the FCRA certificate of an NGO.
    • It made legal for political parties to accept foreign aid through Indian subsidiaries.
    • Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
    • Providing Aadhar is mandatory for all office bearers, directors or key functionaries of the organization.

     

    PYQ:

    2015: Examine critically the recent changes in the rule governing foreign funding of NGOs under the Foreign Contribution (Regulation) Act (FCRA), 1976.

     

    2015: How can be the role of NGOs be strengthened in India for development works relating to protection of the Environment? Discuss throwing light on the major constraints.

     

    Practice MCQ:

    Consider the following statements regarding “Foreign Contribution (regulation) Act”:

    1.    World Bank is excluded from the definition of foreign sources under the act.

    2.    Political parties are prohibited from taking foreign donations under the act.

    Which of the statements given above is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Why was FCRA registration for several NGOs cancelled?

    Introduction

    • In recent developments, the Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organizations (NGOs), the Centre for Policy Research (CPR) and World Vision India (WVI), has been cancelled.

    FCRA: Regulating Foreign Donations

    • Objective: FCRA regulates foreign donations to ensure they do not adversely affect India’s internal security.
    • Compulsory Registration: Any association, group, or NGO intending to receive foreign donations must register under FCRA.
    • Amendments: The FCRA was first enacted in 1976 and amended in 2010, with further changes in 2020.

    Registration and Renewal

    • Initial Registration: NGOs initially register under FCRA for five years, with the possibility of renewal if they adhere to the specified norms.
    • Scope of Usage: Registered groups can receive foreign contributions for various programs, including social, educational, religious, economic, and cultural.

    Cancellations and Renewals

    • Cancellations: Since 2015, over 16,000 NGOs have had their FCRA registrations cancelled due to violations.
    • Active NGOs: As of January 22, 16,989 FCRA-registered NGOs were active in India.
    • Expired Registrations: Nearly 6,000 NGOs’ FCRA registrations ceased from January 1, 2022, either due to the MHA’s refusal to renew or NGOs not applying for renewal.

    Significance and Controversies

    • Risk of Money Laundering and Terrorism Financing: The MHA’s 2012 report highlighted the vulnerability of the NGO sector to money laundering and terrorist financing risks.
    • Record Number of Registrations: In 2023, 1,111 associations received fresh FCRA registrations.
    • Reasons for Rejection: Out of 1,615 applications received for FCRA registration in 2021 and 2022, 722 were granted clearance, while 225 were rejected.
    • Foreign Contribution Amount: In 2019-2022, a total of 13,520 associations received ₹55,741.51 crore in foreign contributions.

    Reasons for Cancellation: CPR and WVI

    • CPR Allegations: The MHA accused CPR of diverting foreign donations to fund protests and legal battles against developmental projects, affecting India’s economic interests. CPR’s publication of current affairs programs using foreign funds was deemed a violation.
    • CPR’s Response: CPR deemed the ministry’s decision incomprehensible and disproportionate, challenging the reasoning behind equating policy reports on their website with current affairs programming.
    • WVI’s Allegations: WVI had its FCRA registration cancelled for alleged violations from 2012-13 to 2020-21. WVI received the highest amount of foreign donations among all NGOs registered under the Act in 1986.

    FCRA Amendments: Recent Changes

    The FCRA underwent significant amendments in 2020, introducing several restrictions:

    • Fund Transfer Prohibition: Section 7 of the Act prohibits the transfer of foreign funds received by an organization to any other individual or association.
    • Designated Bank Account: Recipients must open an FCRA bank account in a designated SBI branch in New Delhi, mandating that all foreign funds be received in this account.
    • Shared Information: The designated bank informs authorities about foreign remittances with source and receipt details.
    • Aadhaar Requirement: The Government can collect Aadhaar numbers of key functionaries of organizations applying for FCRA registration.
    • Cap on Administrative Expenditure: The portion of funds allowed as administrative expenditure was reduced from 50% to 20%.

    Criticisms and Government’s Perspective

    • Arbitrary Restrictions: NGOs criticize the prohibition on fund transfer as arbitrary and restrictive.
    • Non-Sharing of Funds: This prohibition hinders the sharing of aid received as material, impacting collaborative efforts.
    • Inconvenient Designated Bank: The requirement for a Delhi-based bank account is inconvenient for NGOs operating elsewhere.
    • Government’s Justification: The government maintains that these amendments are necessary to prevent foreign state and non-state interference in India’s internal affairs and to curb malpractices in fund utilization.

    Conclusion

    • The FCRA plays a crucial role in regulating foreign donations to NGOs in India.
    • The recent cancellations of CPR and WVI registrations, coupled with the amendments, highlight the complex and evolving landscape of foreign contributions and their impact on Indian NGOs.
    • Understanding these developments is essential for comprehending the dynamics of funding, regulation, and accountability in the non-profit sector.

  • FCRA licence of Centre for Policy Research suspended

    Union Home Ministry suspended the Foreign Contribution Regulation Act (FCRA) licence of the Centre for Policy Research (CPR).

    About CPR

    • The CPR was established in 1973 as a think tank with the mission to contribute to a more robust public discourse about the issues that impact life in India.
    • Its headquarters is located in Chanakyapuri, New Delhi.
    • It is a non-profit, non-partisan, independent institution dedicated to conducting research that contributes to high quality scholarship, better policies.
    • Over the years it has cultivated a reputation as one of the country’s premier public policy think tanks.

    Why was its licence suspended?

    • The CPR allegedly received foreign funds in violation of the FCRA.

    What is FCRA?

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    Why was FCRA enacted?

    • The FCRA sought to consolidate the acceptance and utilisation of foreign contribution or foreign hospitality by individuals, associations or companies.
    • It sought to prohibit such contributions from being used for activities detrimental to national interest.

    What was the recent Amendment?

    • The FCRA was amended in September 2020 to introduce some new restrictions.
    • The Government says it did so because it found that many recipients were wanting in compliance with provisions relating to filing of annual returns and maintenance of accounts.
    • Many did not utilise the funds received for the intended objectives.
    • It claimed that the annual inflow as foreign contributions almost doubled between 2010 and 2019.
    • The FCRA registration of 19,000 organisations was cancelled and, in some cases, prosecution was also initiated.

    How has the law changed?

    There are at least three major changes that NGOs find too restrictive.

    • Prohibition of fund transfer: An amendment to Section 7 of the Act completely prohibits the transfer of foreign funds received by an organisation to any other individual or association.
    • Directed and single bank account: Another amendment mandates that every person (or association) granted a certificate or prior permission to receive overseas funds must open an FCRA bank account in a designated branch of the SBI in New Delhi.
    • Utilization of funds: All foreign funds should be received only in this account and none other. However, the recipients are allowed to open another FCRA bank account in any scheduled bank for utilisation.
    • Shared information: The designated bank will inform authorities about any foreign remittance with details about its source and the manner in which it was received.
    • Aadhaar mandate: In addition, the Government is also authorised to take the Aadhaar numbers of all the key functionaries of any organisation that applies for FCRA registration or for prior approval for receiving foreign funds.
    • Cap on administrative expenditure: Another change is that the portion of the receipts allowed as administrative expenditure has been reduced from 50% to 20%.

    What is the criticism against these changes?

    • Arbitrary restrictions: NGOs questioning the law consider the prohibition on transfer arbitrary and too heavy a restriction.
    • Non-sharing of funds: One of its consequences is that recipients cannot fund other organisations. When foreign help is received as material, it becomes impossible to share the aid.
    • Irrationality of designated bank accounts: There is no rational link between designating a particular branch of a bank with the objective of preserving national interest.
    • Un-ease of operation: Due to Delhi based bank account, it is also inconvenient as the NGOS might be operating elsewhere.
    • Illogical narrative: ‘National security’ cannot be cited as a reason without adequate justification as observed by the Supreme Court in Pegasus Case.

    What does the Government say?

    • Zero tolerance against intervention: The amendments were necessary to prevent foreign state and non-state actors from interfering with the country’s polity and internal matters.
    • Diversion of foreign funds: The changes are also needed to prevent malpractices by NGOs and diversion of foreign funds.
    • Fund flow monitoring: The provision of having one designated bank for receiving foreign funds is aimed at making it easier to monitor the flow of funds.
    • Ease of operation: The Government clarified that there was no need for anyone to come to Delhi to open the account as it can be done remotely.

    Supreme Court’s observation

    • The apex court reasoned that an unbridled inflow of foreign funds may destabilise the sovereignty of the nation.
    • The petitioners have argued that the amendments suffered from the “vice of ambiguity, over-breadth or over-governance” and violated their fundamental rights.
    • But the court countered that the amendments only provide a strict regulatory framework to moderate the inflow of foreign funds into the country.
    • The free and uncontrolled inflow of foreign funds has the potential to impact the socio-economic structure and polity of the country.
    • No one can be heard to claim a vested right to accept foreign donations, much less an absolute right, said the verdict.

    Supreme Court’s assessment of Foreign Funds

    • Philosophically, foreign contribution (donation) is akin to gratifying intoxicant replete with medicinal properties and may work like nectar.
    • However, it serves as medicine so long as it is consumed (utilised) moderately and discreetly, for serving the larger cause of humanity.
    • Otherwise, this artifice has the capability of inflicting pain, suffering and turmoil as being caused by the toxic substance (potent tool) — across the nation.

    Way forward

    • The court said charity could be found at home. NGOs could look within the country for donors.
    • Fundamental rights have to give way in the larger public interest to the need to insulate the democratic polity from the “adverse influence of foreign contributions”.
    • The third-world countries may welcome foreign donations, but it is open to a nation, which is committed and enduring to be self-reliant.
    • An unregulated inflow of foreign donations would only indicate that the government was incapable of looking after its own affairs and needs of its citizens.

     

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  • No Fundamental or Absolute Right to receive Foreign Donations: Supreme Court

    The Supreme Court upheld amendments introducing restrictions in the Foreign Contribution Regulation Act (FCRA) while holding that no one has a fundamental or absolute right to receive foreign contributions.

    What is FCRA?

    • The FCRA regulates foreign donations and ensures that such contributions do not adversely affect internal security.
    • First enacted in 1976, it was amended in 2010 when a slew of new measures was adopted to regulate foreign donations.
    • The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations.
    • It is mandatory for all such NGOs to register themselves under the FCRA.
    • The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.

    Why was FCRA enacted?

    • The FCRA sought to consolidate the acceptance and utilisation of foreign contribution or foreign hospitality by individuals, associations or companies.
    • It sought to prohibit such contributions from being used for activities detrimental to national interest.

    What was the recent Amendment?

    • The FCRA was amended in September 2020 to introduce some new restrictions.
    • The Government says it did so because it found that many recipients were wanting in compliance with provisions relating to filing of annual returns and maintenance of accounts.
    • Many did not utilise the funds received for the intended objectives.
    • It claimed that the annual inflow as foreign contributions almost doubled between 2010 and 2019.
    • The FCRA registration of 19,000 organisations was cancelled and, in some cases, prosecution was also initiated.

    How has the law changed?

    There are at least three major changes that NGOs find too restrictive.

    • Prohibition of fund transfer: An amendment to Section 7 of the Act completely prohibits the transfer of foreign funds received by an organisation to any other individual or association.
    • Directed and single bank account: Another amendment mandates that every person (or association) granted a certificate or prior permission to receive overseas funds must open an FCRA bank account in a designated branch of the SBI in New Delhi.
    • Utilization of funds: Fund All foreign funds should be received only in this account and none other. However, the recipients are allowed to open another FCRA bank account in any scheduled bank for utilisation.
    • Shared information: The designated bank will inform authorities about any foreign remittance with details about its source and the manner in which it was received.
    • Aadhaar mandate: In addition, the Government is also authorised to take the Aadhaar numbers of all the key functionaries of any organisation that applies for FCRA registration or for prior approval for receiving foreign funds.
    • Cap on administrative expenditure: Another change is that the portion of the receipts allowed as administrative expenditure has been reduced from 50% to 20%.

    What is the criticism against these changes?

    • Arbitrary restrictions: NGOs questioning the law consider the prohibition on transfer arbitrary and too heavy a restriction.
    • Non-sharing of funds: One of its consequences is that recipients cannot fund other organisations. When foreign help is received as material, it becomes impossible to share the aid.
    • Irrationality of designated bank accounts: There is no rational link between designating a particular branch of a bank with the objective of preserving national interest.
    • Un-ease of operation: Due to Delhi based bank account, it is also inconvenient as the NGOS might be operating elsewhere.
    • Illogical narrative: ‘National security’ cannot be cited as a reason without adequate justification as observed by the Supreme Court in Pegasus Case.

    What does the Government say?

    • Zero tolerance against intervention: The amendments were necessary to prevent foreign state and non-state actors from interfering with the country’s polity and internal matters.
    • Diversion of foreign funds: The changes are also needed to prevent malpractices by NGOs and diversion of foreign funds.
    • Fund flow monitoring: The provision of having one designated bank for receiving foreign funds is aimed at making it easier to monitor the flow of funds.
    • Ease of operation: The Government clarified that there was no need for anyone to come to Delhi to open the account as it can be done remotely.

    What did the Supreme Court observed now?

    • The apex court reasoned that unbridled inflow of foreign funds may destabilise the sovereignty of the nation.
    • The petitioners have argued that the amendments suffered from the “vice of ambiguity, over-breadth or over-governance” and violated their fundamental rights.
    • But the court countered that the amendments only provide a strict regulatory framework to moderate the inflow of foreign funds into the country.
    • Free and uncontrolled inflow of foreign funds has the potential to impact the socio-economic structure and polity of the country.
    • No one can be heard to claim a vested right to accept foreign donations, much less an absolute right, said the verdict.

    Supreme Court’s assessment of Foreign Funds

    • Philosophically, foreign contribution (donation) is akin to gratifying intoxicant replete with medicinal properties and may work like a nectar.
    • However, it serves as a medicine so long as it is consumed (utilised) moderately and discreetly, for serving the larger cause of humanity.
    • Otherwise, this artifice has the capability of inflicting pain, suffering and turmoil as being caused by the toxic substance (potent tool) — across the nation.

    Way forward

    • The court said charity could be found at home. NGOs could look within the country for donors.
    • Fundamental rights have to give way in the larger public interest to the need to insulate the democratic polity from the “adverse influence of foreign contributions”.
    • The third-world countries may welcome foreign donations, but it is open to a nation, which is committed and enduring to be self-reliant.
    • An unregulated inflow of foreign donations would only indicate that the government was incapable of looking after its own affairs and needs of its citizens.

     

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  • Civil society need to play role in strengthening of institutions

    Context

    In the wake of the second wave of Covid, our failure as a country to hold our government accountable is evident. Civil society perhaps also needs to re-examine its role.

    What constitutes civil society

    • India’s civil society has many actors:
    • Grassroots organisations that connect to the last mile and provide essential services.
    • Think tanks and academic institutions that churn out new policy ideas and generate evidence.
    • Advocacy organisations that amplify and build support for causes.
    • Large impact funds and philanthropists who decide how these organisations get funded.

    Challenges faced by civil society

    • Government have significantly curtailed the kind of activities that civil society actors can engage in.
    • Philanthropists and donor organisations often find themselves unable to support initiatives that strengthen India’s democracy and its accountability mechanisms, for fear of retribution.
    • By ignoring the politics around policy and focussing disproportionately on technocratic solutions, civil society has also missed the wood for the trees.

    How civil society can play role in reforms of democratic institutions

    • In the absence of a strong push from civil society, our democratic institutions have no intrinsic incentive to reform.
    • There is a need to re-examine parliamentary rules that are heavily tilted in favour of the sitting government, strengthen the judiciary, bolster federalism and the independent media, while creating transparency in decision making within the executive.
    • Civil society has an important and irreplaceable role to play here.
    • Civil society organisations too need to broaden their agenda to include issues that strengthen India’s institutions while collaborating to present a strong unified voice that demands more transparency and accountability in all areas and levels of policymaking.
    • This involves taking more fights to the courts on transgressions by the government, building public opinion about expectations from a well-functioning democracy and creating tools and fora that help citizens engage with policymaking more readily.

    Conclusion

    To not see the strengthening of institutions and the deepening of checks and balances as important areas of work is our collective failure, one we must address immediately.

  • Why community efforts are essential for real change

    The article highlights the important role played by civil society and suggest the need for the new framework for the participation of community in the solution of problems.

    Important role played by civil society in second wave of Covid

    • We also have to realise that the state or the market cannot be the only provider for what citizens need.
    • Effective social interactions and community participation can play an important role in scaling up some of the actions that have been found useful.
    • During the second wave of Covid infections, communities emerged as resilient entities across the country.
    • Active engagement with civil society: Recently,  the Prime Minister called for an active engagement of civil society in coping with the pandemic.
    • The empowered group of secretaries has also identified the role of civil society during this period of crisis.

    Tasks for NITI Aayog: New framework

    • NITI should engage government institutions that encourage public participation and also support new frameworks for crisis management.
    • This new framework should critically look into the weaknesses and failures of the existing ones in attracting community participation in an effective manner.
    • This would also help in NITI’s own goal of localisation of development as part of its SDG strategy.
    • NITI should create mechanisms for facilitating the creation of required space for community initiatives.
    • It should leverage advanced technologies ABCD — artificial intelligence, blockchain, cloud computing and data analytics for bridging demand-supply gaps.
    • It is time for NITI to apply the institutional framework where it has to, to rationalise select activities of communities and overcome the failure of the state where it is imminent.
    • NITI should partner with willing state governments to explore the launch of platforms that promote cross-learning and experience-sharing to reduce the cost of operations.
    • This may help in scaling up and, in some cases, overcome the asymmetric flow of information.
    • Opportunities for the participation of communities in decision making and their implementation at local levels may be explored.
    • The advantage for NITI is DARPAN, its portal for all voluntary organisations/non-governmental organisations engaged in development activities.
    • Several informal entities, start-ups and others, at times undefined, may also have to be engaged.

    Initiatives and micro-models

    • Several micro-models are coming up, but few have a larger footprint.
    •  In Nandurbar, for instance, a district collector could achieve what now seems a rare coordination between beds, number of critical patients and supply of oxygen.
    • At the end of the day, they had more beds with oxygen than required.
    • Breathe India and HelpNow represent an array of options, these apps have facilitated access to oxygen concentrators, hospitals and ambulances.
    • There are several such initiatives that are taking place across the country with little connection with each other.
    • These micro-models need to be scaled up.

    Consider the question “The role played by the civil society during the second covid wave highlighted its importance. What we need is a new framework for community participation. In light of this, discuss the important aspects of such framework.”

    Conclusion

    Solutions to any social problem call for an effective collective action that coordinates the aspirations of several groups of stakeholders. The present situation underlines the necessity of combined efforts to face this challenge.

    B2BASICS

    What is civil Society?

    • The society considered as a community of citizens linked by common interests and collective activity is a civil society.
    • It is the aggregate of non-governmental organizations and institutions that manifest interests and will of citizens.
    • It is referred to as the third sector of the society distinct from government and business.

  • What is Extinction Rebellion?

    Delhi Police have named some environmental activists who are volunteers of a global environment movement seeking to call attention to the climate change emergency, in the Greta Thunberg ‘toolkit’ case.

    Q.Climate activism is increasingly turning into a propaganda movement. Discuss.

    What is Extinction Rebellion?

    • The global movement Extinction Rebellion also referred to as ‘XR’, describes itself as a decentralized, international and politically non-partisan movement using non-violent direct action and civil disobedience.
    • It aims to persuade governments to act justly on the Climate and Ecological Emergency.
    • XR was launched in the UK on October 31, 2018, as a response to a report by the United Nations Intergovernmental Panel on Climate Change (IPCC).
    • It had then declared that we only have 12 years to stop catastrophic climate change and our understanding that we have entered the 6th mass extinction event.
    • The movement now has a presence in 75 countries, including India.

    What does XR want?

    • The group has “three core demands” of governments around the world.
    • It wants governments to “Tell the Truth”, to “Act Now”, and to “Go Beyond Politics” in order to confront the climate and ecological emergency that the world is faced with.
    • It wants them to communicate the urgency to bring change, and reduce greenhouse gas emissions to net-zero by 2025.
    • XR seeks to “rebel”, and asks groups to “self-organise”, without the need for anyone’s permission, to come up with collective action plans as long as they adhere to the group’s core principles and values.

    What activities have XR done so far?

    • The group had announced a “Declaration of Rebellion” at launch, involving a public act of civil disobedience in London, demanding that the government reduce carbon emission to zero by 2025.
    • The eventual plan was to coordinate actions in other countries and to engage in an “International Rebellion” in March 2019.
    • The XR global website, however, states that the movement is “strictly non-violent”, and that they are “reluctant law-breakers”.
    • In April 2019, Greta Thunberg, the teenage Swedish climate activist, lent her support to the group by speaking to its members in London.

    XR and India

    • The movement claims to have been inspired by 15 major civil disobedience movements around the world, including, apart from Women’s Suffrage and the Arab Spring, India’s struggle for Independence.
    • It refers to Mahatma Gandhi’s Salt March in 1930.
    • XR’s website says there are 19 groups in the country, including in the cities of Mumbai, Pune, Delhi, Hyderabad, Bengaluru, Kolkata, and Chennai.

    Recent events

    • One of the group’s early public events was a “die-in” protest organised at Bandra Reclamation in Mumbai in October 2019.
    • Participants at “die-in” protests lie on the ground, pretending to be dead.
    • Since the city was already seeing protests against the felling of trees at Aarey Colony for the Metro crashed, police did not grant permission for the “die-in” protest.