India’s NGO Backlash

Editor’s Note: On July 10, 2014, the Indian Government presented its draft budget to the Indian parliament.  This draft budget grants revenue officials the power to revoke the registration and tax exemptions of any nongovernment organizations or charitable institutions that violate the country’s complex tax rules. There is press speculation that this budget provision is related to a report produced by one of India’s domestic intelligence services.  This report denounces the country’s NGOs as fronts for foreign interests that are undermining India’s development. The leaked report claims that NGOs are responsible for a 2 to 3 percent loss to economic growth.