No Entry! India Plugs Loopholes to Halt Foreign Influence in News

In a decisive move to shield India’s news ecosystem from foreign influence, the government has rolled out a series of stringent measures to block foreign funding of print and digital news outlets. The Ministry of Home Affairs (MHA) is now plugging regulatory gaps that previously allowed non-profit entities and NGOs to channel overseas donations into news and current affairs, often under the guise of education, research, or advocacy.

Key Highlights:

Mandatory Affidavits: For the first time, NGOs and non-profits backed by foreign foundations are being asked to submit sworn affidavits declaring they will not print or publish news or views on public affairs. These affidavits, to be notarized, make it virtually impossible for such entities to receive foreign funds for news-related activities by closing interpretational loopholes.
Stricter FCRA Compliance: Organizations seeking fresh Foreign Contribution (Regulation) Act (FCRA) licenses or reactivating cancelled registrations must now provide detailed undertakings on their publishing activities. The FCRA, which already prohibits foreign funding for media organizations producing news or current affairs content, is being enforced with greater rigor, extending its reach to digital platforms and even YouTube channels.
Personal Accountability: The new rules shift responsibility directly to chief functionaries, who must now certify, alongside their chartered accountants, that all foreign funds are used strictly for their stated, non-media purposes. This creates a clear legal trail and raises the stakes for compliance.
Narrowing the Loopholes: NGOs can no longer bypass media restrictions by labeling their outputs as newsletters, research, or community outreach. Any entity receiving foreign funds must categorically state that it does not engage in news or current affairs publishing, whether in print, digital, or audio-visual formats.
Equity Route Still Open: While direct foreign donations are now tightly regulated, local news media can still attract foreign capital through minority equity investment, subject to government approval.

These changes, effective from January 2025, signal a new era of oversight and accountability, ensuring that the funding of India’s news space remains transparent, lawful, and free from covert foreign influence.

Sources: The Economic Times, Nishith Desai Associates, NEXT IAS