Mapping an Institutionally Coordinated and Globally Aligned Roadmap for Shariah Compliant Finance in India

Abstract

Shariah compliant finance has evolved from a few niche institutions to a robust global industry encompassing a wide range of financial services. While regions like the Gulf and South-East Asia have advanced practices, secular countries with significant Muslim populations, such as India, remain underrepresented in global reports. This paper aims to bridge that gap by shining a spotlight on Indian Shariah compliant finance practices. It relies on comprehensive secondary data and insights from a decade-long experience of the author in the industry, offering a clear snapshot of status of the Indian Shariah compliant financial industry. The paper not only documents prevailing practices but also outlines the specific regulatory challenges — the Bottlenecks - that exist in India. By doing so, the paper ensures that the local Shariah compliant financial practices gain worldwide recognition. The paper also provides an institutionally coordinated and globally aligned roadmap with clearly defined roles and strategies for the future development of Shariah compliant finance in the Indian context, making it a valuable resource for global researchers interested in the nuances of this evolving industry.