IslamicFinance.de

Islamic banking has a presence in India in the form of NBFCs and Baitul Mal (Islamic Treasury), but the business is small. Many Indian institutions, including some government-owned ones, have shown interest in this growing niche opportunity, for example Kerala government-owned KSIDC. India needs an Islamic banking model as a tool of financial inclusion. Moreover, India could attract the Middle East’s high investible surplus through Islamic banking and finance. However, there are also challenges, like the regulatory framework, dearth of Islamic banking professionals and lack of awareness. By not introducing Islamic finance, India is losing the opportunity of garnering capital from a large section of the Muslim population as well as from Islamic nations in the Middle East and elsewhere.