A leaked report by India's Intelligence Bureau (IB) on the functioning of non-governmental organizations (NGOs) in India has accused several NGOs, including Greenpeace, Amnesty, and Cordaid, of hindering economic growth by campaigning against government-backed projects. This led to increased scrutiny and constraints on NGOs receiving foreign funding, with the Indian government viewing them as tools of foreign governments. The Foreign Contribution Regulation Act (FCRA), introduced in 2010, required NGOs to obtain foreign funding licenses.

Initially, some believed that increased scrutiny could promote local ownership and awareness of the role of NGOs. However, the attack on foreign funding did not result in a surge of domestic support, leading many organizations to fold. Approximately 10,000 FCRA licenses have been revoked, partly due to administrative issues and partly due to government tactics that created barriers for smaller organizations lacking capacity. Consequently, the environment for constructive engagement with the government has significantly deteriorated, with limited space for dialogue on human rights issues.

NGOs must re-register for their FCRA licenses, and organizations with permanent licenses must renew them every five years. Despite these challenges, NGOs are adapting their strategies to navigate the hostile environment. Some NGOs are shifting away from campaign approaches and exploring alternative avenues to advocate for change, considering the vulnerability of traditional campaigns to government backlash. The ongoing legal battles of Greenpeace India against government attempts to shut them down. It emphasizes the importance of communicating effectively and gaining public support.

However, it is acknowledged that addressing long-term issues such as climate change may seem secondary to the immediate concerns of poverty and basic needs for most Indians. The trend of increasing constraints on civil society is not unique to India, as similar challenges are observed in other countries like the UK.

Protecting the voices of NGOs and activists is identified as a significant challenge for the development community. It is argued that strategic adaptation is necessary, whereby NGOs must continue challenging governments while simultaneously building support within local communities. Balancing advocating for change and engaging with local stakeholders is crucial to ensuring the effectiveness and sustainability of NGOs' efforts in developing countries. 

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