WTC GIFT CITY and VERBIND its trade services arm represented by Ms. Khair Ull Nissa participated in an International seminar themed “Interest free and equitable financing in India” organized by PHD Chamber of Commerce in New Delhi on 06th October 2017.
In this decade of rapid development, India stands on the cusp of major change: a transformation that could lead to unprecedented economic growth paired with radical improvements in the nation’s Human Development Index (HDI) and other socio-economic parameters. However, India being the fastest growing economy in the world requires trillions of funding for its spending on major development (social and physical infrastructural) projects so as to build a shared prosperity for its 1.25 Billion citizens. According to the estimates, USD 1.5 trillion is required in the development of infrastructure for the next 10 years.
With the outlook for global lending markets still uncertain, part of the solutions for India may lie in finding alternatives to conventional financing. Interest free finance or Islamic finance is one such alternative. Today, Participative banking industry is showing an average growth rate of 15%-20% annually and comprises around 400 institutions in 75 countries with an asset under management in excess of USD 2 trillion.
This Participative funding could serve to mobilize money from oil-rich Gulf States that could easily be channelized through an interest-free system to finance India’s requirement of investment for the major development sectors such as infrastructure, agriculture and new economic development programs. Also, at the same time, due to its interest-free operations, Islamic Banking could also play a crucial role in eradicating poverty by helping debt-ridden farmers, labourers and other marginalized groups.
Speaking on the occasion as a distinguished speaker Ms. Khair Ull Nissa Sheikh said that,” GIFT CITY can emerge as a hub for participative banking in South Asia concurrently with its role as hub for the BFSI industry”. The introduction of Participative Banking in India will open plethora of opportunities for the its home grown banking industry and will also provide fillip to the economy through its innovative system and plans.