Arab World should invest in India, India should consider Islamic economics

By Mumtaz Alam Falahi, TwoCircles.net,

New Delhi: India has outsmarted global meltdown and thus is becoming a preferred destination for global investors. This is the right time the Arab World invested in India. For India, the time has come for value-based economics and business. Our country should consider Islamic banking and finance system that have solutions for our modern world, said Dr Manzoor Alam, president, Indo-Arab Economic Co-operation Forum and Chairman, Institute of Objective Studies.


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Delivering welcome address at the two-day international conference on “Beyond the Meltdown: Search for Options” jointly organized by the two organizations today in New Delhi, Dr Manzoor Alam strongly lobbied for foreign investments particularly from the Arab World and Gulf countries.

“The economic recession and meltdown have adversely affected the developed world through 2008-09. Waves of instability and insecurity have shaken up their institutions and their confidence. In Asia, and more specifically in India, we were relatively sheltered from this financial chaos and havoc. Our banks and financial institutions, our stock markets and corporate have not suffered as those in the Western world,” said Dr Alam adding that this has endeared India to foreign investors.



“We are becoming a preferred and save destination for global investors, a haven of democracy and a shining example of a multi-cultural, multi-religious progressive society,” said Dr Alam and counted the pillars on which foreign investors can build their structure.

“Our Constitution, rule of law, our independent judiciary, independent regulatory bodies in industry and trade are some of the pillars of modern democratic India. For foreign investors, especially from the Arab world and Gulf countries, their business platforms can be built on these pillars.”

He cited the areas where Arab World and India need strong and long-term partnerships.

“India needs long-term partnerships with friendly countries from the Arab World. These long-term partnerships in manufacturing, trade and commerce, services and social development can be a win-win situation for all stakeholders.”

While pitching for introduction of Islamic economics and financial system in India, Dr Alam praised the human face of Manmohanomics and said India can now show the world the way forward with “humane socio-economic reforms – reforms that will lead to inclusive development, all-round growth and sustainable action-plans for all segments of society.” India needs to be guided by humane values and principles that ensure growth and equitable distribution of wealth in society, Dr Alam said and called for introduction of value-based economics and business.

“Islamic economics, finance and banking have answers and solutions for our modern world. They may be debated and adopted as an option. Let me assure you that it has new models, paradigms and methodologies of development to offer,” he said and pointed out that the option is all the more important when “the western model is failing and it has failed to ensure stability and security in the developed world whose society it is supposed to serve.”

In his inaugural speech, Shashi Tharoor, Minister of State for External Affairs, described the conference very timely and talked about the present economic relations between India and the Arab World.

In 2009, Indo-Arab economic relations saw a business of US$110 bn. For about 75% requirement of crude oil India is dependent on the Arab World, said the minister adding that socio-economic and political relations between India and Arab World go much deeper than mere economic relations.

On India’s stand on Palestine, the minister said India supports statehood of Palestine while acknowledging the right of state of Israel to exist. The resolution of Palestine-Israel conflict, he said, lies in dialogue. The issue cannot be resolved by force, he added.

The opportunities for Islamic finance in India will be discussed on February 4, the second and last day of the conference. That session will be chaired by Prof. M. Nejatullah Siddiqui with speakers like Dr Umar Chapra, Adviser, Islamic Development Bank, Jeddah, Dr Monzer Kahf, Consultant of Islamic Banking and Finance, Qatar and others deliberating the issue.

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