By TCN News,
Varanasi: In spear heading its efforts to spread the message and highlight the importance of Islamic Banking & finance in the country, H Abdur Raqeeb, General Secretary, Indian Centre for Islamic Finance (ICIF) presented a paper on “Need & Relevance of Islamic banking and finance in Post Economic Meltdown Era” in an International Workshop titled “Post Economic Meltdown Era, Challenges and strategies” conducted by the Faculty of Management Studies, Banaras Hindu University (BHU).
The paper highlighted Islamic Finance as a viable alternative to the current Global Meltdown. It pointed out the characteristics that led to the severe meltdown of the world economy and how implementation of Islamic finance principles could have averted the crisis.
H Abdur Raqeeb
It also quoted various well known personalities like Dr. MS Swaminathan who stressed on the introduction of Islamic Banking in the country as a solution to the farmer’s suicide in the Vidarbha region. The paper included Dr Raghuram Rajan, ex chief economist (IMF) & honorary economic adviser to the Prime Minister of India’s Committee on Financial Sector Reforms (CFSR) report which recommends that “Measures should be taken to permit the delivery of interest-free finance on a larger scale, including those through the banking system. This should be in consonance with the objectives of inclusion and growth through innovation”.
The paper quoted a recent report by Standard & Poor’s – “‘Will Islamic Finance play a key role in funding Asia’s huge Infrastructure task?’ – the report asks countries like India to open up the gates for Islamic finance to attract investments in the infrastructure development of the country.
The paper quoted the remark by Mr. Klaus Schwabb, Executive Chairman, World Economic Forum while delivering his welcome address in WEF 2009 “Today we have reached a tipping point, which leaves us only one choice – change or face continued decline and misery.” The change can be equity finance based on Islamic financial principles; instead of debt financing and toxic products used in sub-prime mortgage crisis.
The GRAIL, a well known U.S market intelligence and Data analysis provider in its report said that “India has the potential to emerge as a significant market for Islamic banking provided there is a favorable change in the regulatory environment & increased awareness among Muslims and India as a whole.”
The paper concludes stating that Government of India – Finance Ministry & RBI should now re examine stand on Islamic Finance and create an attractive environment for Islamic Finance investors to participate in the market as undertaken by Modern, Secular & industrialized countries and also for the inclusive growth of the marginalized and the minorities – The Aam Aadmi of our great country.
Mr Raqeeb interacted & discussed the relevance of Islamic Finance in India with the Faculty members of the Management Studies, experts & professionals including RK Singh (Chairman & Managing Director, BPCL) Dr Jeffrey Alves (Wilkes University, USA) and Ms Taylor (USA) and Mr Asim Kumar Mishra (IIM Lucknow).
The workshop was conducted in association with SAARC, AMDISA and Allianz University, Bangalore. Participants from Bhutan, Sri Lanka, United states, Egypt, Iran and from around India attended the conference
Full paper could be downloaded from the presentation section of the website www.icif.in