India cancellled the licenses of nearly 9000 NGOs in May 2015 over foreign-funding regulations. In response, civil society organisations have written this open letter to Prime Minister Modi expressing their deep concern at the labelling and targetting of the non profit sector. See more here. Additionally, there are claims that the Foreign Contribution (Regulation) Act (FCRA) of 1976 is being systematically used to silence dissent. Currently, the only recourse an organisation has on losing its FCRA license is the judiciary, which has so far handed down favourable verdicts to those organisations that have had their registrations suspended and accounts frozen by the Minsitry of Home Affairs. See here and here for more.
A paper by the Institute of Rural management Anand (IRMA) on the challenges facing this sector is here.
Read a blog by Seema Nair, Consultant, South Asia Program, The Fund for Global Human Rights, on the shrinking space for Indian civil society here.