Modi's regulatory crackdown on NGOs could backfire

Significance

In April, similar action was taken against nearly 9,000 other non-profits. These moves are part of intensifying clashes between the government and civil society. Many NGOs are vocal opponents of Modi's key policies, and the government is frustrated at their perceived ability to harness popular opposition and use the judiciary to stall key projects.

Impacts

• Government efforts on coal (and to a lesser extent nuclear energy) will still encounter NGO resistance.
• The Supreme Court may become embroiled in the NGO-government clash, portending costly and lengthy battles for investors.
• Western governments are likely to be more sensitive to Modi's regulatory crackdown, risking hurdles in improving diplomatic ties.