Analysis of Foreign Funding into India

Analysis of Foreign Funding into India
By Sanjeev Nayyar

A friend sent me a mail that gave details of funds received in 2006-07 from the Western world primarily Christian countries of USA, UK, Germany and Spain. That got me wondering! Why are these countries pouring thousands of crores into India? If it is because many Indians are poor, then are no poor people in their countries? Questions like these and media reports of conversions to Christianity in Orissa prompted me to do a google search on the subject.
Inward remittances by NGO’s are governed by the Foreign Contribution Regulation Act 1976 or FCRA for short. To know more http://www.mha.nic.in/fcra.htm. I visited the site and got the Ministry of Home Affairs Reports for the years 2003-04 to 2006-07.

The key points are
Between 1993-94 and 2006-07 a sum of Rs 64,670 crs was the sum of Foreign Contributions received into India by organizations registered with the Home Ministry Govt of India and who filed their declarations.
Total funds received per annum have gone up from Rs 1865 to 12290 crs (1993-94 to 2006-07) i.e. an increase of 650%
The % of Associations submitting details of foreign contributions has fallen from 66% in 1997-98 to 56% in 2006-07. That means that the actual amount of foreign contributions received is much higher than the reported Rs 12,290 crs in 2006-07.
Foreign contributions have increased by over 100% since UPA came to power.
Top remitting countries are USA, Germany and UK. Amounts remitted between 2002-03 to 2006-07 are Rs 10,589 crs, Rs 5,233 crs and Rs 4,612 crs.
Top Donor Agencies in these years are Western read Christian except for a contribution from Liaison Office Dalai Lama Japan in 2006-07.
Tamil Nadu, Delhi, Andhra Pradesh, Maharashtra are top receivers of foreign contributions.
Tamil Nadu receipts jumped from Rs 775 crs in 2002-03 to Rs 2244 crs in 2006-07, nearly a 200% increase.
Chennai, Ranchi, Mumbai, Kolkata, Bangalore, Uttara Kanada, Hyderabad are amongst the districts who received maximum foreign contributions.
Many districts of Tamil Nadu received over Rs 100 crs each in 2006-07.
Key Donors do not appear from the Muslim world. Means they are remitting in large sums through the Hawala route or not remitting in large numbers.
Find below key data and my analysis.

Trends of Foreign Contributions YearRegistered Associations
(as on 31st March of F.Y.)Associations
who gave details of
Contributions recdAmt of Foreign
Contributions recd
(Rs in crores)
1993-9415,039NA1865
1994-9515,723NA1892
1995-9616,740NA2168
1996-9717,723NA2571
1997-9818,48912,198 (66%)2864
1998-9919,83413,775 (69%)3402
1999-0021,24413,996 (66%)3924
2000-0122,92414,598 (64%)4535
2001-0224,56315,598 (64%)4872
2002-0326,40416,590 (63%)5047
2003-0428,35117,145 (61%)5105
2004-0530,32118,540 (61%)6257
2005-0632,14418,570 (58%)7878
2006-0733,93719,011 (56%)12,290
Total 1993-94 to 2006-0764,670
NA is not available.
Total funds received between 1993-94 have gone up from Rs 1865 to 12290 crs i.e. an increase of 650%.
The % of Associations submitting details of foreign contributions has fallen from 66% in 1997-98 to 56% in 2006-07. That means that the actual amount of foreign contributions received is much higher than the reported Rs 12,290 crs. It would be interesting to know what action Home and Finance Ministries takes against organizations that do not submit details of contributions received.
Is it a matter of coincidence or irony that foreign contributions have increased by over 100% after the UPA govt has come to power in 2004? Note that Tsunami hit Tamil Nadu in December 2004.
Top Remitting Countries Rs crs YearUSAGermanyUKItaly others
2002-031680715685NA
2003-041584757676350*
2004-051927931764353#
2005-06242611811062500*
2006-07297216491425606&
Total1058952334612
*Italy, #Netherlands, & Switzerland.

Top Donor Agencies Rs crs Donor’s Name & Country2006-07Donor’s Name & Country2005-062004-052003-04
Misereor, Postfach,Germany 1244GospelFellowshipTrustIndia,USA229NILNIL
World Vision USA469Gospel for Asia, USA 13711040
Fundacion Vicente Ferrer, Spain399Plan International UK111217
A.S.A. Switzerland302Foundation Vicent E Ferrer Spain104NILNIL
Liasion off of Dalai Lama Japan237Christian Aid UK803125
Gospel for Asia, USA227Miseror Mozartstrasse Germany784429

In 2006-07 of the top fifteen donors the only one with an Indian sounding name was M/s Om Foundation Inc USA Rs 97 crs. Except for Dalai Lama the others appear to be Christian organizations. The same is the case with top donors in 2005-06.
State Wise receipts of Foreign Contributions 2002 to 2007 (Rs crs)* State2006-072005-062004-52003-42002-03
1.Tamil Nadu224416091191800775
2. Delhi218715561075857881
3. Andhra Pradesh12111012914684630
4. Maharashtra1195664552481505
5. Karnataka1077621512529489
6. Kerala884656509423409
7. Jharkand72697776758
8. West Bengal517355340291272
9. Gujarat389301238192272
10. Others18601007849781756
Total12,2907,8786,2575,1055,047

*Taken from various annual reports published by the Ministry of Home Govt of India.

The purpose of highlighting various numbers in bold for different years are to bring to your attention the increase in foreign contributions received by individual states.
Top Recipient Districts of Foreign Contributions 2002 to 2007 (Rs crs)* District2006-072005-062004-52003-42002-03
Chennai929754561385363
Mumbai892441322300284
Ranchi654NANANANA
Bangalore628465377358358
Kolkatta339236206NANA
Jaipur256NANANANA
Uttara Kanada246NANANANA
Hyderabad/Sec244237178180181
Ananthpur231288288209169
Ahmedabad230162126NANA
Tirunelveli230NANANANA
Madurai223193129NANA
Vellore 221NANA NANA
Quillon 199199101NANA
Ernakulam193165150NANA
PuneNA 121119NANA
KrishnaNA11193NANA
TiruchirapaliNA9474NANA
KancheepuramNA9265NANA
TrivandrumNA9158NA NA

Numbers for 2006-07, 2005-06, 2004-05 taken from FCRA 2006-07 reports. NA stands for not available. Districts of Tamil Nadu are major recipients.
Top Recipient Associations 2003-04 to 2006-07 (Rs crs) * Association 2006-07Associations 2005-062004-052003-04
Ranchi Jesuits622World Vision of India Tamil Nadu256134104
Santhome Trust of Kalyan Maharashtra333Caritas India Delhi1946538
Sovereign Order of Malta, Delhi301Rural Development Trust Andhra Pradesh127119126
World Vision of India Tamil Nadu256Churchs’s auxiliary for Social Action Delhi966437
North Karnataka Jesuit Educational and Charitable Society230Plan International Inc Delhi926557
Help in Suffering his Sanctuary Rajasthan209Saifee Hospital Trust Maharashtra86272
Believers Church India Kerala149Mata Amritanandmayi Math Kerala85NIL39
Caritas India Delhi127Believers Church India Kerala794737
Rural Development Trusts Andhra Pradesh122Sri Satya Sai Central Trust Andhra Pradesh727850
Headmaids of Sacred Jesus Society Maharashtra118Oxfam India Trust, Delhi 725334
*2006-07 FCRA reports. The nos for 2003-04 taken from FCRA 2005-06 report.
Viewers must form their own opinion. I would urge all followers of Dharma to share their wealth with schools and hospitals in both rural and urban areas.

All data is taken from the FCRA reports published by the Home Ministry Government of India. I have tried to pick up the data correctly, errors and omissions are regretted.

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