Kochi: India can attract good investment from middle-eastern countries once the country accepts interest-free finance system, said Dr Mudassir Siddiqui, noted interest-free banking expert. He was speaking to media persons in Kochi, where he had come to attend the international seminar on Islamic economy.
Dr Siddiqui said that several institutions and individuals in the West Asian countries were in high hopes of getting investment opportunities in India which is moving forward as one of the biggest economic powers. India’s traditional relations with the Arab countries would help in choosing the country as a major centre of investments.
According to major international consultancies such as the McKenzie, investment surplus in the West Asian region is expected to be around $ 9 trillion by 2020. The investment surplus at present is around $ 1.5 trillion. The country can attract a considerable portion this huge investment potential by developing an appropriate policy and regulatory network. The regulations for an interest-free economic system can be formulated in such a way as not adversary to the current system.
Around 70 countries including the USA, England, France and Hong Kong are successfully practicing it. The Committee chaired by Dr Raghuram has recommended that India should practice interest-free finance also for the comprehensive growth of the banking sector. Some countries have added Islamic finance also to their laws. The seminar being held in Kochi aims at creating awareness among financial experts, policy-making personalities, investors etc about interest-free banking. Talks would be held with Cabinet Minister Pranab Mukherji and the RBI authorities about the hurdles before Islamic banking in Kerala. Utilization of interest-free money has a lot of scope in the development ventures in the basic infrastructure in Kerala, Dr Siddiqui added.
H Abdur Raqeeb (Indian Centre of Islamic Finance) and Dr Abdussalam Vaniyambalam (Director, Shanthapuram Al Jamia al Islamiya) also were present at the press conference.
The International Seminar on Interest-free Finance is being held in the Le Meridian Hotel in Kochi. The three-day seminar is organized jointly by the Islamic Research and Training Institute of the Jeddah-based Islamic Development Bank and the Al Jamia al Islamiya Shanthapuram. The seminar was inaugurated on Monday by Js VR Krishna Iyer.