Saturday, April 03, 2010

The Indian economy needs to understand its hidden potential and use it for getting Islamic Funds

India must take lessons from Malaysia, which has used the Islamic Funds to the fullest of its advantage. Surprisingly, 70% of such funds have been used by non-Muslims in the country. The contribution of these funds has reached close to 16% of the total economy. Till now, $31 billion has been infused by the Islamic Finance Assets. And it is growing at the rate of 12-15 %.

However, there is a flicker of hope. The PM during his Saudi visit had given a lot of emphasis to Islamic Funds and that is important for India. Gulf countries are more liquidated than the other rich countries and this can be used by India to fund its own requirements. Power, Energy, Shipping and Port sectors can be the major beneficiaries of this funding.

But companies and the government must be very cautious before using them.Proper knowledge about the do’s and don’ts is necessary since they are designed with different principles altogether. Then, possibly, building bonds with sukuks (Islamic bonds), won’t be so difficult.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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