Abstract
This article seeks to understand how the Indian state exercises control over transnational ties between foreign and domestic actors by examining the national legislative practices that determine receipt of foreign funds and the data on foreign funding flows to NGOs (a database of more than 18,000 associations). The article shows how legislative practices of democratic states serve to reduce foreign influence. Issue characteristics are also shown to determine state response to externalization, blocking transnational ties in “high politics” areas such as minority claims. Finally, within state imposed restrictions, religious rather than secular organizations remain dominant transnational actors in India. The study contributes evidence to suggest that contrary to the arguments of world polity theory and many transnational social movement scholars, states continue to remain powerful actors limiting transnationalization.
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