Article by Jayesh H, Monil Chheda & Sanjana Rao
In September 2015, the IMF estimated that the aggregate
financial assets, held in Islamic accounts, were above US$2
trillion globally and that they would outperform the growth of
conventional finance in many countries.
Renowned Indian economist MS Swaminathan, who is also the
pioneer of green revolution in India, stated that Islamic finance
could be an effective solution for resolving farmer suicides in
India. Though Islamic finance has been sluggish in its traction in
the Indian economy, there have been developments from an Indian
context which provide hope for the future.
A concrete step toward ushering in Islamic finance into India
was the execution of an MoU between the IDB and the Export-Import
Bank of India (EXIM). The MoU's terms permit IDB to open its
first branch in India to offer Shariah compliant financial and
banking services. A commercial line of credit amounting to US$100
million is to be extended by
