Indians Must Know The Extent Of Foreign Funding In National Politics

IPA Staff
9 Min Read

By Dr. Gyan Pathak

Ever since October 2 when the anti-CEC protests was launched by the INDIA bloc alleging vote theft by CEC Gyanesh Kumar to make PM Narendra Modi to win elections, BJP leaders have sharpened their attack on protesters alleging that they are getting foreign funds to spread anarchy in India. Even Prime Minister Narendra Modi alleged on October 31 that the opposition was taking foreign help to destabilise the country. In a counter attack Leader of the Opposition Rahul Gandhi on November 2, accused PM of relying on foreign help, external financial support, and foreign social media backing to remain in power challenging him to an open debate.

When a prime minister and the leader of opposition of a country are  involved in allegations and counter allegations of foreign funding, involving both the ruling and the principal opposition party, the matter acquires a grave national importance. One can’t treat it merely as another political controversy or an exchange of accusations between two leaders. It is because any foreign influence over political parties can threaten India’s sovereignty, democratic independence, national security, and the integrity of elections.

India now needs evidence of foreign help and funding to the political parties, and it is not enough that both Narendra Modi and Rahul Gandhi exchange accusations and challenge each other. People can’t let it go because India’s political sovereignty could be compromised. If a foreign government, organisation, business interest or other foreign entity secretly finances an Indian political party, it could potentially expect political influence in return.

Free and fair elections could have also been undermined, if the allegations are true. Elections are meaningful only when Indian voters can make their choices without hidden external financial influence. Foreign money, if illegally channelized  into political campaign, could distort election advertising and propaganda, political campaigning and media influence, party organisation and voter mobilisation, and financial balance between competing political parties. This is not simply a BJP-versus-Congress issue. It concerns every Indian voter.

Nation security could be at stake. Undisclosed foreign financial relationships can create vulnerabilities to pressure, influence operations, intelligence gathering or political interference. Therefore, suspicious or prohibited funding deserves serious scrutiny.

It is all the more serious because under Section 3 of the Foreign Contribution (Regulation) Act, 2010 (FCRA), political parties and their office-bearers are prohibited from accepting foreign contributions. The law also prohibits intermediaries from knowingly channelling foreign contributions to political parties. This makes the allegations particularly serious. If illegal foreign funding has occurred, the question is not merely political morality. It could involve a criminal offence and a breach of India’s regulatory framework.

Ordinary Indians have a right to know who is influencing our political choices because it involves democracy. Are foreign interests influencing Indian decision in relation to national security? Are financial interests influencing government policies in matter of economy? Is foreign money distorting electoral competition? Are the same laws being applied to the ruling party and opposition in the matter of foreign funding? Are India’s decisions being made independently? Foreign interference in Indian democracy should concern citizens regardless of their political preferences.

There is something particularly troubling about this situation. The Prime Minister represents the government of India. The Leader of Opposition represents the principal parliamentary opposition and provides democratic scrutiny of the government. When these two highest-profile political leaders accuse each other of foreign influence, the credibility of India’s democratic institutions is potentially affected. If one accusation is true, India deserves to know. If both accusations are false, India deserves to know that too. If either leader has made allegations without evidence, that too deserves public scrutiny. India cannot afford to turn national sovereignty into an election slogan.

No political party is above the nation and no political leader is above accountability. Therefore, both Narendra Modi and Rahul Gandhi should disclose what specific evidence supports their allegations. General statements about foreign connections are insufficient. Where credible evidence of prohibited foreign funding exists, the appropriate authorities should investigate, irrespective of the party involved. Political parties should disclose their funding sources, beneficial ownership of contributing entities, intermediaries and relevant financial transactions, subject to applicable law. The issue deserves serious discussion in Parliament. The Prime Minister and the Leader of Opposition both have constitutional responsibilities to the country. No political party should receive protection because it is in power, and no political party should be targeted merely because it is in opposition.

A recent Fox News Digital report has  cited in Indian political debates alleging that a global “red-green protest ecosystem” is coordinating unrest across multiple countries, including India. BJP targeted the Indian protesters citing this report. However, another recent report by Bellingcat has reported that RSS linked organisation helping BJP during elections have got huge foreign funds during 2020-24. The $33.7 million from Ekal USA was reported as going to Ekal Vidyalaya projects in India. Sewa USA’s $29.7 million went to South Asia. How much amount of this went to RSS affiliates in India is not known. Then there was Donor-advised funds of which Bellingcat identified at least $24.4 million in grants from 34 organisations managing donor-advised funds to Ekal USA and Sewa USA. The figures require close scrutiny because opposition allege that they are used to fund hate campaign and Hindu consolidation.

Ruling BJP claims that Gandhi family linked Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT) also got foreign funds. The two organisations together declared approximately ₹326.7 crore in foreign contributions between 2006–07 and 2019–20. In 2020, the Home Ministry established an inter-ministerial committee to investigate alleged violations involving RGF, RGCT and the Indira Gandhi Memorial Trust. In 2022, the MHA cancelled the FCRA registrations of RGF and RGCT.

The real question now is who gives the money, who receives it, who controls it, where does it go, and does it influence Indian politics? India needs answer. But for this, India will have to create foreign funding transparency database, and investigate it fairly. Investigate specific allegations made by the Prime Minister and Leader of Opposition. Both should submit evidence to appropriate authorities rather than leave the country with competing political accusations.

We also need to watch political donations through Indian Corporates having foreign partners. According to ADR report of March 2026, Corporate or business donations to political parties in 2024-25 was Rs 6,128.79 crore out of which BJP got Rs 5,717.17 crore, and Congress Rs 411.62 crore. The BJP received more than thirteen times the corporate donations received by all other national parties combined. BJP received Rs 3,157.65 crore from electoral trust while Congress received Rs 298.78 crore. Companies may support political parties, but Indian citizens must have the right to know who is financing the people who govern them. (IPA Service)

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