Ford Foundation Freezes India Funding, Citing New Restrictions

India has tightened rules for foreign NGOs, thus affecting the inflow of funds from the Ford Foundation.

Building of the Ford Foundation in Manhattan, New York City. (Photo: iStockphoto)

Ford Foundation, a leading global charity has frozen $4 million in funding to India, squeezing aid to the poor, after a clampdown by Prime Minister Narendra Modi on donors deemed to be meddling in domestic politics that has raised concern in Washington.

The Modi-led BJP government’s restrictions on the US-based Ford Foundation relate to a $250,000 grant to a vocal Modi critic, but a top official at the charity said the fallout has hit projects that fight child marriage, provide clean water in slums and feed pregnant women.

We don’t want to move ahead until the time we are clear about the rules and nothing we do is viewed as illegal.

— A Ford Foundation Official who requested to be anonymous.

Ford Foundation Caught Up In Crackdown

The Ford Foundation has donated more than $500 million to India since opening its first overseas office in Delhi in 1952. Its headquarters in New York did not respond to requests for comment about the decision to hold back funds.

India has toughened rules on governing charities, and this year the government cancelled the registration of nearly 9,000 groups for failing to declare details of overseas donations.

Modi’s government has accused foreign charities of trying to hamper industrial projects on social and environmental grounds, and he has criticised what he called “five-star activists.”

Greenpeace: Most Affected

Greenpeace India is among those affected, with bank accounts frozen and travel restrictions on some workers after it campaigned against issues including coal mining and nuclear power, areas Modi sees as key to economic growth.

Under a proposed law, foreign-funded NGOs face more regulatory hurdles and must agree their work will not be “detrimental to the national interest.” Activists say the term is not clearly defined, leaving it open to abuse.

Amid the crackdown, the home ministry put the $12.5 billion Ford Foundation on a watch list this year over funding it gave to activist Teesta Setalvad in 2009.