Analysis of Foreign Funding into India

Analysis of Foreign Funding into India By Sanjeev Nayyar February 2009 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 Year Registered Associations (as on 31st March of F.Y.) Associations who gave details of Contributions recd Amt of Foreign Contributions recd (Rs in crores) 1993-94 15,039 NA 1865 1994-95 15,723 NA 1892 1995-96 16,740 NA 2168 1996-97 17,723 NA 2571 1997-98 18,489 12,198 (66%) 2864 1998-99 19,834 13,775 (69%) 3402 1999-00 21,244 13,996 (66%) 3924 2000-01 22,924 14,598 (64%) 4535 2001-02 24,563 15,598 (64%) 4872 2002-03 26,404 16,590 (63%) 5047 2003-04 28,351 17,145 (61%) 5105 2004-05 30,321 18,540 (61%) 6257 2005-06 32,144 18,570 (58%) 7878 2006-07 33,937 19,011 (56%) 12,290 Total 1993-94 to 2006-07 64,670 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 Year USA Germany UK Italy others 2002-03 1680 715 685 NA 2003-04 1584 757 676 350* 2004-05 1927 931 764 353# 2005-06 2426 1181 1062 500* 2006-07 2972 1649 1425 606& Total 10589 5233 4612 *Italy, #Netherlands, & Switzerland. Top Donor Agencies Rs crs Donor’s Name & Country 2006-07 Donor’s Name & Country 2005-06 2004-05 2003-04 Misereor, Postfach,Germany 1244 GospelFellowshipTrustIndia,USA 229 NIL NIL World Vision USA 469 Gospel for Asia, USA 137 110 40 Fundacion Vicente Ferrer, Spain 399 Plan International UK 111 2 17 A.S.A. Switzerland 302 Foundation Vicent E Ferrer Spain 104 NIL NIL Liasion off of Dalai Lama Japan 237 Christian Aid UK 80 31 25 Gospel for Asia, USA 227 Miseror Mozartstrasse Germany 78 44 29 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)*< )tr> :td align="left^" valign="top >9. Gujarat389672 10. OthersZr> td align="righp" valign="top">5,047p The purpoqe of highlightihg various numbers in bold for different years ave to bring to your attention thg increase in foreign contributikns received by ondividual statew. p Top Recipignt Districts of$Foreign Contribstions 2002 to 2007 (Rs crs)*^r 363 Mqmbai>td align="righr" valign="topX">322p < +tr> :td align="left" valign="top">Jaipur256Xr Uttara Kalada> /tr> l 8/tr> h State 2006-07 2005-06 2004-5 2003-4 2002-03 1.Tamil Nadu 2244 1609 1191 800 775 2. Delhi 2187 1556 1075 857 881 3. Andhra Pradesh 1211 1012 914 684 630 4. Maharashtra 1195 664 552 481 505 5. Karnataka 1077 621 512 529 489 6. Kerala 884 656 509 423 409 7. Jharkand 726 97 77 67 58 8. West Bengal 517 355 340 291 272 321 238 192 1003 849781 736 7,878<+b> 6,257 5,105 2006-07<+b> 2005-06 2004-5 2003-4<-b> 2002-03 Chennai 929 774 561 385 892:/td> 441 302 284 Ranchi 654 NA NA NG Bangalore 62< 465377 318 358 Kolkatte 339236 226 NANA NA NA NG NA 246 NA NA NA Hyderabad/Sec:/td> 244 237 17: 180181 Ananthpur 231 288 288 209 169 Ahmedabad 230 162 126 NA NA Tirunelveli 230 NA NA NA NA Madurai 223 193 129 NA NA Vellore 221 NA NA NA NA Quillon 199 199 101 NA NA Ernakulam 193 165 150 NA NA Pune NA 121 119 NA NA Krishna NA 111 93 NA NA Tiruchirapali NA 94 74 NA NA Kancheepuram NA 92 65 NA NA Trivandrum NA 91 58 NA 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 2006-07 Associations 2005-06 2004-05 2003-04 Ranchi Jesuits 622 World Vision of India Tamil Nadu 256 134 104 Santhome Trust of Kalyan Maharashtra 333 Caritas India Delhi 194 65 38 Sovereign Order of Malta, Delhi 301 Rural Development Trust Andhra Pradesh 127 119 126 World Vision of India Tamil Nadu 256 Churchs’s auxiliary for Social Action Delhi 96 64 37 North Karnataka Jesuit Educational and Charitable Society 230 Plan International Inc Delhi 92 65 57 Help in Suffering his Sanctuary Rajasthan 209 Saifee Hospital Trust Maharashtra 86 27 2 Believers Church India Kerala 149 Mata Amritanandmayi Math Kerala 85 NIL 39 Caritas India Delhi 127 Believers Church India Kerala 79 47 37 Rural Development Trusts Andhra Pradesh 122 Sri Satya Sai Central Trust Andhra Pradesh 72 78 50 Headmaids of Sacred Jesus Society Maharashtra 118 Oxfam India Trust, Delhi 72 53 34 *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. Email feedback to esamskriti@suryaconsulting.net This e-mail address is being protected from spam bots, you need JavaScript enabled to view it