Jeddah-based Indian Forum for Interest-Free Banking is to meet Prime Minister Manmohan Singh, seeking changes in the existing law, so as to allow functioning of Islamic banks and financial institutions in the country.
Forum secretary V.K. Abdul Aziz told the media here on Monday that with the country seeking funds for major infrastructure projects, Islamic finance had the potential to meet the needs of the sector.
And, as part of Emerging Kerala, when the state looks at massive investments for major infrastructure projects in ports, airports and high speed rail corridor, Shariah-compliant funds would prove beneficial, he added.
According to experts who were present, the interest-based economic and banking system was one of the main reasons for the global financial crisis, poverty and instability.
The Shariah-compliant system was being practised in 50 countries and there were more than 300 Islamic banks and financial institutions with assets of around $1.6 trillion.
Interest-free finance could bring about dramatic economic, industrial and social development for the country and Emerging Kerala could look at ensuring greater flow of such funds from Gulf investors, they felt.