Upliftment of the Marginalized in India: A Study of the Muslim Empowerment Through Islamic Social Finance

Abstract

India being a dynamic emerging economy, with religious and cultural diversity, is home to 0.172 billion Muslims, that is 14.2 percent of the population at all India level living as the financially excluded minority community in the country. The Indian Muslims according to Sachar Committee Report (2005) are the financially ‘excluded’ community and are not the major beneficiary of Govt. schemes.” The Reports/Commissions such as Ranganathan Misra Committee (2007); Mahmoodur Rahman Committee (2008); Sudhir Commission Report (2016) and Commission of Inquiry (Telangana 2016), reveal that Muslims in India, are living in pathetic conditions with underdeveloped socio-economic and educational setup. In this context, the current paper aims to-explore through qualitative analysis the possible dimensions of social finance and to evaluate the current socio-economic conditions of Muslims in India. This study will be an attempt to assess the potential of Islamic social finance institutions, namely the zakat and the waqf, for community upliftment in a much broader national context.

Keywords:

• diversity
• marginalized
• inclusive
• indicators

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Notes

1 Registrar General and Census Commissioner Data on Population by Religious Communities, Press Information Bureau, Ministry of Home Affairs, Government of India, 25th August, https://pib.gov.in/newsite/printrelease.aspx?relid=126326 (accessed 22 January 2023 See also: Abusaleh Shariff, Myth of Muslim Growth, in Indian Express Opinion column 2nd September, 2015, https://indianexpress.com/article/opinion/columns/myth-of-muslim-growth/ (accessed 22 January 2023

see also: https://www.pewresearch.org/religion/2021/09/21/population-growth-and-religious-composition/ (accessed 22 January 2023

2 Prime Minister’s High Level Committee Cabinet Secretariat Government of India November, 2006, A report on Social, Economic and Educational Status of the Muslim Community of India (Sachar committee, https://www.minorityaffairs.gov.in/sites/default/files/sachar_comm.pdf (accessed 22 January 2023 Report on minorities, High power panel on minorities, scheduled castes Scheduled tribes & other weaker sections (Gopal panel/committee) Ministry of Home Affairs, Government of India New Delhi 14th June, 1983, http://ncm.nic.in/home/pdf/special_report/report%20on%20minorities.pdf (accessed 22 January 2023 Post Sachar Evaluation Committee (Amitabh Kundu Report), 29th September, 2014, https://www.sabrangindia.in/sites/default/files/audio_listing_images/kundu_commission_report_0.pdf?698 (accessed 00/00/0000. 22 January 2023 Ranganathan Misra Committee 2007, p. 28, https://en.wikipedia.org/wiki/National_Commission_for_Religious_and_Linguistic_Minorities (accessed 22 January 2023Mehmoodur Rahman. 2008 Chapter10 (https://mdd.maharashtra.gov.in/Site/Upload/Pdf/Mahmmodur_Rahman_Committee Report_with_Cover_page.pdf) (accessed 22 January 2023

3 Maidul Islam, Indian Muslim (s) after Liberalization, Oxford University Press, India, 2019, pp: 8–9. See also, [Abhijit Sen] Himanshu, Inequality in India: A Review of Levels and Trends, United Nations University, UNU-WIDER,WP2019/42), https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp-2019-42. pdf (accessed 22 January 2023 See also: L. Channel,, T. Piketty, E. Saez, G. Zucman et al., World Inequality Report, 2022, World Inequality Lab, https://wir2022.wid.world/wwwsite/uploads/2021/12/WorldInequalityReport2022_Full_Report.pdf (accessed 22 January 2023). See also: Oxford Poverty and Human Development Initiative (2018). Global Multidimensional Poverty Index 2018: The Most Detailed Picture to Date of the World’s Poorest People, p. 23, https://ophi.org.uk/wp-content/uploads/G-MPI_2018_2ed_web.pdf (accessed 22 January 2023)

4 Imamul Haque, Fayaz Ahmad Lone & Ghulam Hassan Thakur, “Islamic Banking in India: What More Needed?”, Journal of Islamic Economics, Banking and Finance, Vol. 5, No.3, 2017, p. 80.

5 Muhammad Hamidullah, “Interest free Credit Societies”, Ma’arif, Azamgarh, India, Vol. 53, No. 3, 1944, pp. 211–216. See also: Nisar Shariq and Mohsin Aziz, “Islamic Non-Banking Financial Institutions in India: Special Focus on Regulation”, Seminar on Non-Bank Financial Institutions: Islamic Alternatives, 1–3 March 2004, Renaissance Kuala Lumpur Hotel, p. 6, https://www.academia.edu/77585759/Islamic_Non_Banking_Financial_Institutions_in_India_Special_Focus_on_Regulation (accessed 22 January 2023).

6 M. Y. Khan, “Banking Regulations and Islamic Banking in India: Status and Issues”, International Journal of Islamic Financial Services Vol. 2 No. 4. 2001. See also: Shabana Khan, “Islamic Banking and Finance: Potential and Prospects in India”, unpublished PhD diss., Gokhale Institute of Politics and Economics, Pune, India, 2017.

7 M. J. Akbar, “Minority and Minorityism: The Challenge before Indian Muslim”, in Lives of Muslims in India: Politics, Exclusion and Violence, ed. Abdul Shaban, 2nd ed., London and New York, Routledge, 2018.

8 Peter Hardy, The Muslims of British India, Cambridge: Cambridge University Press, 1972. See also Belmekki Belkacem, The Impact of British Rule on the Indian Muslim Community in the Nineteenth Century, Revista de Filología Inglesa (es review. Spanish Journal of English Studies 2016 onwards ES 28 (2007–8):

9 Sir Alfred C. Lyall, Asiatic Studies: Religious and Social, 2nd ed., London: Bradbury, Agnew & co printers, 1884.

10 Sabah Khan, “Social Exclusion of Muslims in India and Britain”, Journal of Social Inclusion Studies, Vol. 6, No.1, 2020, see also Yasmeen Jahan, “Intersectionality of Marginalization and Inequality: A Case Study of Muslims in India”, Journal of Political Sciences and Public Affairs, Vol. 4, No.1. 2016.

11 Omar Khalidi, Indian Muslims Since Independence, New Delhi: Vikas Publishing House, 1995,

12 S. Abid Husain, The Destiny of Indian Muslims, New Delhi: Asia Publication House, 1965, see also Omar Khalidi, Indian Muslims Since Independence, op. cit. 1995.

13 Sabah Khan, “Social Exclusion of Muslims in India and Britain”, op. cit. 2020.

14 Abdul Shaban, Lives of Muslims in India: Politics, Exclusion and Violence, 2nd ed., London and New York: Routledge Taylor & Francis Group, 2018.

15 Abdul Rahman, Denial and Deprivation: Indian Muslims After the Sachar Committee and Ranganath Mishra Commission Reports, Routledge, London, 2019.

16 Planning Commission Report on Financial Sector Reforms, A Hundred Small Steps- Report of the Committee on Financial Sector Reforms by Raghu Ram Rajan, 2008, https://faculty.iima.ac.in/~jrvarma/reports/Raghuram-Rajan/cfsr_all.pdf, see also, RBI report, on “Medium Term Path on Financial Inclusion” by Debashish Mohanty Dec. 2015, https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/FFIRA27F4530706A41A0BC394D01CB4892CC.PDF (accessed 27 January 2023).

17 Post Sachar Evaluation Committee (Amitabh Kundu Report), 29th September, 2014, https://www.sabrangindia.in/sites/default/files/audio_listing_images/kundu_commission_report_0.pdf?698 (accessed 00/00/0000 27 January 2023).

18 M. Kabir Hassan, et al. “Reinvigorating the Contributions of Islamic Social Finance in attaining the SDGs: A Review”, 'International Journal of Islamic Economics and Governance (IJIEG), 18 March 2021.

19 Associations of Muslim Professionals Report, National Zakat Survey, 2018, https://www.ampindia.org/National_Zakat_Survey_Report (accessed 27 January 2023).

20 Syed Salman Ahmed, et.al. “Introducing Waqf Based Takaful Model in India”, Tazkia Islamic Finance and Business Review, Vol. 7, No. 2, 2014.

21 Mohammad Abdullah, “Islamic Endowment (Waqf ) in India: Towards Poverty Reduction of Muslims in the Country”, Journal of Research in Emerging Markets, April, 2020.

22 Post Sachar Evaluation Committee (Amitabh Kundu Report) op. cit., 2014.

23 Burjor Avari, Islamic Civilization in South Asia: A History of Muslim Power and Presence in the Indian Subcontinent, London and New York: Routledge, 2013, p. 150.

24 Ibid. pp. 153–155. See also: Belkacem Belmekki, “Sir Sayyid Ahmad Khan’s View of the Causes of the Great Revolt in British India in the Mid-Nineteenth Century”. Alizés: Revue Angliciste de La Réunion, Faculté des Lettres et Sciences Humaines (Université de La Réunion), Identities and Voices, 2007, pp. 91–112. hal-02343069, https://www.researchgate.net/publication/337150805_Sir_Sayyid_Ahmad_Khan's_View_of_the_Causes_of_the_Great_Revolt_in_British_India_in_the_Mid-Nineteenth_Century

25 Burjor Avari, Islamic Civilization in South Asia, op. cit.

26 M. J. Akbar, “Minority and Minorityism: The Challenge before Indian Muslims”, op. cit. p. 28.

27 Belmekki Belkacem, “The Impact of British Rule on the Indian Muslim Community in the Nineteenth Century”, op. cit. (2007–8), pp. 27–46, p. 35 and p. 37.

28 Belmekki Belkacem, “Sir Sayyid Ahmad Khan’s View of the Causes of the Great Revolt in British India in the Mid-Nineteenth Century”. op. cit.

29 Peter Hardy, The Muslims of British India, op. cit. p. 62.

30 Ibid.

31 Belmekki Belkacem, Sir Sayyid Ahmad Khan’s View of the Causes of the Great Revolt in British India,, op. cit., pp. 33–35.

32 Ibid.

33 Sir Alfred C. Lyall, Asiatic Studies: Religious and Social, op. cit. pp. 239–240.

34 Ibid.

35 W. W. Hunter, The Indian Musalamans, London: Trubner and Company, 1876, p. 90. Reproduced by Sani H. Panhawar, https://www.sanipanhwar.com/The%20Indian%20Musalmans%20by%20W.%20W.%20Hunter%20-%201876.pdf (accessed 2 August 2023).

36 Ibid.

37 Sabah Khan, “Social Exclusion of Muslims in India and Britain”, op. cit., 2020, pp. 56–77. See also, Abdul Shaban. Lives of Muslims in India: Politics,Exclusion and Violence, 2nd ed. London and New York: Routledge Taylor & Francis Group, 2018, p. 95. See also Yasmeen Jahan, “Intersectionality of Marginalization and Inequality: A Case Study of Muslims in India”, Journal of Political Sciences and Public Affairs, Vol. 4, No.1. 2016, p. 2.

38 Omar Khalidi, Indian Muslims Since Independence, op. cit., 1995, pp. 59–63. See also, S. Abid Husain, The Destiny of Indian Muslims, op. cit., 1965, p. 229.

39 Omar Khalidi, Indian Muslims Since Independence, op. cit., pp: 70, 71 and 91.

40 Ibid., pp, 70,71 and 91.

41 Timur Kuran and Anantdeep Singh, “Economic Modernization in Late British India: Hindu-Muslim Differences,” Economic Development and Cultural Change, Vol. 61, No. 3, April 2013, p. 505.

42 Omar Khalidi, Indian Muslims Since Independence, op. cit., pp. 75,76.

43 Report on Minorities, High Power Panel on Minorities, Scheduled Castes Scheduled Tribes & Other Weaker Sections (Gopal panel/committee) Ministry of Home Affairs Government of India, New Delhi, India, 14 June, 1983 Vol. I p. 48, http://ncm.nic.in/home/pdf/special_report/report%20on%20minorities.pdf (accessed 27 January 2023).

44 Prime Minister’s High Level Committee Cabinet Secretariat Government of India November, 2006, A report on Social, Economic and Educational Status of the Muslim Community of India (Sachar committee) p. 165, https://www.minorityaffairs.gov.in/sites/default/files/sachar_comm.pdf (accessed 27 January 2023).

45 Ibid.

46 Sukhadeo Thorat, and Paul Attewell, “The Legacy of Social Exclusion: A Correspondence Study of Job Discrimination in India”, Economic and Political Weekly, Vol. 42, No. 41, October 13–19, 2007, pp. 4141–4145, https://www.jstor.org/stable/40276548 (accessed 22 February 2023).

47 Sabah Khan, “Social Exclusion of Muslims in India and Britain”, op. cit., p. 64.

48 Jemol Unni, “Informality and Gender in the Labour Market for Muslims: Has Education been a Route Out of Poverty”, in Handbook of Muslims: Empirical and Policy Perspectives, ed. Rakesh Basant and Abusaleh Shariff, New Delhi: Oxford India Press, 2010, p. 227.

49 Ibid., p. 228.

50 Sabah Khan, “Social Exclusion of Muslims in India and Britain”, op. cit., 2020.

51 Sachar Committee, op. cit., pp. 89–91. See also: Census of India data for 2001 and 2011 on https://censusindia.gov.in/ (accessed 22 February 2023).

52 Abdul Shaban, “Introduction”, Lives of Muslims in India: Politics, Exclusion and Violence, op. cit.

53 Abdul Rahman, “Introduction”, Denial and Deprivation: Indian Muslims After the Sachar Committee and Ranganath Mishra Commission Reports, London: Routledge, 2019.

54 Maidul Islam, Indian Muslim (s) after Liberalization, India: Oxford, 2019, pp. 8–9. See also, Himanshu, Inequality in India: A Review of Levels and Trends, United Nations University, UNU-WIDER, WP 2019/42), https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp-2019-42.pdf

55 Ibid. See also, Oxfam International, India: “Extreme Inequality in Numbers” Available at: https://www.oxfam.org/en/india- extreme-inequality-numbers (accessed 27 January 2023).

56 L. Channel, T. Piketty, E, Saez, G. Zucman, et al., World Inequality Report 2022, World Inequality Lab, https://wir2022.wid.world/www-site/uploads/2021/12/WorldInequalityReport2022_Full_Report.pdf (accessed 27 January 2023).

57 Ibid. See also, “Oxford Poverty and Human Development Initiative”, Global Multidimensional Poverty Index 2018: The Most Detailed Picture To Date of the World’s Poorest People, p. 23, https://ophi.org.uk/wp-content/uploads/G-MPI_2018_2ed_web.pdf (accessed 27 January 2023). For details on Financial Inclusion and Islamic Finance, see Planning Commission Report on Financial Sector Reforms, A Hundred Small Steps- Report of the Committee on Financial Sector Reforms by Raghu Ram Rajan 2008, https://faculty.iima.ac.in/~jrvarma/reports/Raghuram-Rajan/cfsr_all.pdf (accessed 27 January 2023). See also, RBI report, on “medium term path on financial inclusion” by Debashish Mohanty, https://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/FFIRA27F4530706A41A0BC394D01CB4892CC.PDF (accessed 27 January 2023).

58 For details on Financial Inclusion and Islamic Finance, see “Planning Commission Report on Financial Sector Reforms”, “A Hundred Small Steps- Report of the Committee on Financial Sector Reforms” by Raghu Ram Rajan 2008, op. cit. See also, RBI report, on “Medium Term Path on Financial Inclusion” by Debashish Mohanty, Dec. 2015, op, cit.

59 Nabil Maghrebi and Abbas Mirakhor, “Risk Sharing and Shared Prosperity in Islamic Finance”, Islamic Economic Studies, Vol. 23, No. 2. 2015: pp. 85–115.

60 Islamic Financial Services Board (IFSB), Technical note on Financial Inclusion and Islamic Finance TN-3, 2019, p.no. 11, https://www.ifsb.org/download.php?id=5519&lang=English&pg=/published.php (accessed 27 January 2023).

61 Global Report on Islamic Finance, Islamic Finance: A Catalyst for shared prosperity, World Bank group, Islamic Development Bank, 2017, p. 33, https://openknowledge.worldbank.org/handle/10986/25738 (accessed 27 January 2023).

62 Zamir Iqbal and Abbas Mirakhor, “Islam’s Perspective on Financial Inclusion”, Journal of Islamic Business and Management, Vol.2, No. 1, 2012, p. 47.

63 Mabid Ali Al-Jarhi and Muhammad Anas Zarqa, “Redistributive Justice in a Developed Economy: An Islamic Perspective” in Advances in Islamic Economics and Finance, ed. Munawar Iqbal et al., Islamic Research &Training Institute, Islamic Development Bank, Jeddah, 2007, p. 57.

64 Mahmoud Moheildin et al., “The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (O.I.C.) Countries,” The World Bank, The Islamic Economics and Finance Working Group, Policy Research Working Paper No.5920. December 2011, https://openknowledge.worldbank.org/handle/10986/3692 (accessed 27 January 2023).

65 Islamic Financial Services Board (IFSB), Technical note, op. cit., pp. 88,89.

66 Islamic Social Finance Report, Islamic Research and Training Institute (IRTI) and Thomson Reuters, 2014. pp. 53–55, https://irti.org/product/islamic-social-finance-report-2014/ (accessed 27 January 2023).

67 Shahbaz Alam and Mezbah Uddin Ahmad, “A Critique of Zakat Practices in India”, International Journal of Zakat and Islamic Philanthropy, Vol. 2, No. 2, September, 2020, p. no. 5. See also Dr. F. R. Faridi, “An Analysis of Zakat System in India its Collection and Distribution”, The 3rd International Zakat Conference, 14–17, May 1990, 19–22, Shawwal 1410h, Kuala Lumpur, Malaysia.

68 Shahbaz Alam et al. “A Critique of Zakat Practices in India”, op. cit.

69 Associations of Muslim Professionals Report, National Zakat Survey, 2018, https://www.ampindia.org/National_Zakat_Survey_Report (accessed 27 January 2023).

70 Sachar Committee Report, op. cit., 2020.

71 M. Kabir Hassan, et.al. “Reinvigorating the Contributions of Islamic Social Finance in attaining the SDGs: A Review”, 'International Journal of Islamic Economics and Governance (IJIEG), 18 March, 2021, pp. 8–10.

72 Islamic Social Finance Report, op. cit., 2014.

73 Syed Salman Ahmed. et.al., “Introducing Waqf Based Takaful Model in India”, Tazkia Islamic Finance and Business Review, Vol. 7, No. 2., 2014, pp. 236–237.

74 Post Sachar Evaluation Committee – Amitab Kindu Report, 29th September, 2014, p. 165, https://www.sabrangindia.in/sites/default/files/audio_listing_images/kundu_commission_report_0.pdf?698 (accessed 27 January 2023).

75 Mohammad Abdullah, “Islamic Endowment (Waqf) in India: Towards Poverty Reduction of Muslims in the Country”, Journal of Research in Emerging Markets, Vol. 2, No. 2, April 2020, p. no. 55.

76 Gopal Panel/Committee, op. cit., pp, 6, 28.

77 For details on Waqf Mismanagement see, Gopal panel/committee 1983, (introduction), op. cit. See also, Sachar Committee Report, op. cit. Chapter 11. See also, Ranganathan Misra Committee, 2007, p. 28, op. cit. See also, Mehmoodur Rahman, 2008, Chapter10, op .cit. See also Amitab Kundu, Report, 2013, op. cit. chapter 06.

78 Amitabh Kundu Report, op. cit., pp. 165–167.

79 Ibid.

80 Sachar Report, op. cit., pp. 218, 219.

81 Chethan Kumar, “6.1 Lakh Waqf Properties across India, most in UP, WB and Karnataka” Times of India TOI, February 8, 2020, https://m.timesofindia.com/india/6-1-lakh-waqf-properties-across-india-most-in-up-west-bengal-karnataka/articleshow/74021460.cms?frmapp=yes (accessed 22 February 2023).

82 Mohammad Manzoor Alam, “Potent Potential of Awqaf in Social and Economic Development,” JKAU Islamic Economics, Vol. 31, No. 2, July 2018, p. 103.

83 Contributions of the O.I.C. institutions to the Achievement of the Sustainable Development Goals (SDGS). A Joint report by the OIC institutions (IDB, COMCEC, and SESRIC, November 2016, pp. 1–6.), https://www.comcec.org/wp-content/uploads/2021/07/32-IS-SDG.pdf (accessed 22 February 2023).

Additional information

Notes on contributors

Athar Shahbaz Wani

Athar Shahbaz Wani , is Senior Research Fellow at the Department of Islamic Studies, Islamic University of Science and Technology, Awantipora, Jammu and Kashmir, India. E-mail: [email protected].