Non-Governmental Organisation (NGO) in India

Non-Governmental Organisations (NGOs) in India: Evolution, Role, Challenges and the Road Ahead

Non-Governmental Organisations (NGOs) are private, voluntary, non-profit entities that operate independently of the state to advance social, economic, environmental, developmental and humanitarian objectives. In India, NGOs are an indispensable component of civil society—mobilising communities, advocating for rights, delivering welfare services, innovating solutions to poverty, and strengthening democratic accountability.

India hosts one of the world’s largest NGO ecosystems. Estimates suggest over 3.4–3.7 million registered organisations across societies, trusts, and Section 8 companies. However, only a fraction are fully active and professionally managed. As per the Ministry of Home Affairs (2024–25), around 35,000 NGOs hold valid FCRA licences (down from over 50,000 a decade earlier), reflecting intensified regulatory scrutiny.

NGOs in India have grown organically with the nation’s socio-political evolution—shaping policies, influencing laws, delivering last-mile services, and playing a catalytic role in social transformation.

Historical Evolution of NGOs in India

1. Pre-Independence Era

Voluntary action has ancient roots in India through traditions of daan, seva, and community welfare. The 19th and early 20th centuries saw formalisation of voluntary initiatives:

• Raja Ram Mohan Roy’s Brahmo Samaj (1828) promoting social reform.

• Ishwar Chandra Vidyasagar’s work on widow remarriage and women’s education.

• Swami Vivekananda’s Ramakrishna Mission (1897) focusing on education, health and spiritual upliftment.

• Mahatma Gandhi’s constructive programmes, including Harijan upliftment and rural development (e.g., Harijan Sevak Sangh, 1932).

These reformist and philanthropic movements shaped the earliest foundations of NGO culture in India.

2. Post-Independence (1950s–1970s)

After 1947, the Indian state took primary responsibility for development. Yet, NGOs emerged as essential development partners:

• AVARD (Association for Voluntary Agencies for Rural Development) promoted community development.

• Gandhian organisations focused on rural industries, leprosy eradication, and panchayati raj.

• International partners like Oxfam began supporting Indian voluntary organisations.

This period emphasised welfare, community development, and rural reconstruction.

3. Rights-Based and Advocacy Movements (1980s–1990s)

This era marked a shift from welfare to empowerment and advocacy:

• Mazdoor Kisan Shakti Sangathan (MKSS) initiated the social audit movement leading to the RTI campaign.

• Centre for Science and Environment (CSE, 1980) pioneered environmental research and advocacy.

• SEWA (Self-Employed Women’s Association, 1972) strengthened the informal women workforce.

• Activist organisations fought for tribal land rights, democratic reforms, and gender equality.

4. Post-2000s: Professionalisation and Regulation

Technological advances, CSR laws, and global philanthropy transformed the NGO sector:

• Rise of Akshaya Patra, Pratham, Goonj, Smile Foundation, Teach For India.

• Increased government scrutiny, especially after FCRA amendments (2010 & 2020).

• Emergence of data-driven, impact-oriented development models.

NGOs evolved into sophisticated, professional institutions using technology, partnerships, and social entrepreneurship.

Legal and Regulatory Framework

Indian NGOs may register as:

1. Societies (Societies Registration Act, 1860)

• Flexible, democratic structure.

• Widely used for cultural, educational, and charitable organisations.

2. Trusts

• Under the Indian Trusts Act, 1882 or state-specific laws.

• Typically for religious, charitable, and philanthropic work.

3. Section 8 Companies (Companies Act, 2013)

• Most regulated and transparent form.

• Cannot distribute profits; must reinvest surplus toward objectives.

4. Foreign Contribution (Regulation) Act (FCRA), 2010; Amendments 2020

Mandatory for receiving foreign funds. Key provisions:

• Cap of 20% on administrative expenses.

• Ban on sub-granting foreign funds.

• Aadhaar mandatory for key office-bearers.

• Centralised FCRA bank account in Delhi.

• Resulted in cancellation of over 20,000 licences between 2015–2024.

5. Income Tax Act: 12A/12AB and 80G

• Tax exemptions for NGOs and donors.

• Mandatory for CSR funding eligibility.

6. Constitutional Backing

• Article 19(1)(c): Right to form associations.

• Entry 28 of Concurrent List: Charities and charitable institutions.

Major Areas of Work

NGOs operate in nearly all development sectors:

1. Education

• Pratham: Largest citizen-led learning survey (ASER).

• Teach For India: Leadership in teaching.

• Akshaya Patra: Mid-day meals for 2.2 million children daily.

2. Health

• Aravind Eye Care System: Over 500,000 cataract surgeries annually.

• Karuna Trust, Smile Foundation: Rural health outreach.

3. Livelihoods & Women Empowerment

• SEWA, Mann Deshi Foundation, Lijjat Papad: Models for grassroots economic empowerment.

4. Environment & Climate Action

• CSE, Greenpeace India, WWF-India: Advocacy, research, conservation.

5. Child Rights

• CRY, Bachpan Bachao Andolan (Kailash Satyarthi): Child labour rescues, education, rehabilitation.

6. Disaster Relief & Humanitarian Response

• Goonj: Cloth-based development and disaster intervention.

• SEEDS, Rapid Response, Hemkunt Foundation.

Funding Landscape

Funding Sources in 2023–24

• Domestic philanthropy & individual donations: ~40%

• Corporate Social Responsibility (CSR): ~35%

• Foreign institutional donors: ~15%

• Government funding: 8–10%

• Self-generated income: ~5%

CSR has become a major driver:
The India Philanthropy Report 2024 shows private giving crossed ₹1 lakh crore, of which CSR alone contributed ₹30,000 crore.

Roles and Functions of NGOs in India

1. Service Delivery

NGOs reach areas where government services are inadequate:

• Education

• Health care

• Nutrition programmes

• Elderly and disability care

2. Advocacy and Rights Movements

They play a key role in:

• RTI campaigns

• LGBTQ+ rights

• Women’s rights

• Tribal and forest rights

3. Community Mobilisation

They strengthen local governance through:

• Self-help groups

• Microfinance

• Farmer Producer Organisations (FPOs)

4. Governance and Policy Influence

• Social audits for MGNREGA

• Policy research (CSE, ADR)

• Transparent electoral reforms

5. Disaster Management

During COVID-19, organisations like GiveIndia and Hemkunt Foundation provided:

• Oxygen

• Ration

• Medical supplies

6. Environmental Stewardship

• Forest protection (Chipko)

• Wildlife conservation

• Waste management initiatives

Case Studies

1. Polio Eradication

NGOs such as Rotary International supported the government and WHO, making India polio-free in 2014.

2. Chipko Movement

Grassroots activism by villagers and environmental groups prevented deforestation in the 1970s.

3. RTI Act 2005

Social audits by MKSS catalysed one of India’s most powerful transparency laws.

Challenges and Criticisms

1. Shrinking Civic Space

• FCRA licence cancellations

• Tax raids and legal cases against rights NGOs

• Amnesty International India forced to shut (2020)

2. Funding Crisis

• Foreign funding restrictions

• Heavy dependence on CSR

• Reduced global donor support

3. Lack of Professionalism

Many small NGOs struggle with:

• Weak governance

• Poor documentation

• Inadequate monitoring systems

4. Misuse of Funds by Some Organisations

A few fraudulent NGOs damage the credibility of the sector.

5. Urban–Rural Imbalance

Most professional NGOs are concentrated in:

• Delhi

• Maharashtra

• Karnataka
  Leaving poorer states underserved.

6. Overdependence on Government Schemes

NGOs risk becoming contractors rather than independent civil society actors.

Government Reforms for Better Accountability

1. FCRA 2020 Amendments

Stricter rules for foreign funding and compliance.

2. NGO-DARPAN Portal (NITI Aayog)

Centralised database of credible NGOs for government partnerships.

3. CSR Policy Reforms

Mandatory impact assessments for large CSR projects.

4. Digital Reporting

Online filing of returns and financial statements.

The Road Ahead: Strengthening the NGO Sector

1. Self-Regulation and Accreditation

• Wider adoption of certification systems like Credibility Alliance and GuideStar India.

2. Digital Transformation

• Blockchain-based financial transparency

• Mobile-based citizen reporting

• GIS mapping for programme targeting

3. Domestic Resource Mobilisation

• Payroll giving

• Crowdfunding (Milaap, Ketto)

• Donor-Advised Funds (DAFs)

4. Partnerships with Government and Private Sector

• Co-creation instead of confrontation

• Technical partnerships in missions like Jal Jeevan Mission

5. Strengthening Grassroots Capacity

• Mentorship and funding for small, rural NGOs

Non-Governmental Organisations in India are vital pillars of democracy and development. They supplement government programmes, advocate for rights, innovate solutions, and deliver last-mile services efficiently and compassionately. Despite facing increasing regulatory pressure, funding volatility, and public scrutiny, Indian NGOs continue to demonstrate resilience, creativity, and impactful service delivery.

The future of India’s NGO sector lies in balancing autonomy with accountability, scaling without losing community roots, and embracing technology while preserving human empathy. A transparent, collaborative, and empowered NGO ecosystem will remain central to building a more inclusive and equitable India.