Marketing of Shari'ah-based financial products and investments in India

Purpose - Most conventional financial products currently on offer to Muslims in the Indian market are incompatible with Islamic religious principles; there is a recognized demand for alternatives within this niche community. India has the third largest Muslim population in the world - 155,477,386 in 2011. The purpose of this paper is to present the status of marketing activities of Shari'ah-based investments and a comprehensive analysis of avenues for Islamic investments in India. Design/methodology/approach - In India, Islamic investment is gathering pace as Muslims in the country are becoming more vocal in their demands for greater self expression. Hence, there is a great potential in India itself. Even if a small percentage of this population can be pressured to invest in the Islamic investments, the amount of money that can be brought into the system could be enormous. Findings - The findings reveal the emergence of Islamic investment opportunities on Shari'ah-based investments in India. This paper also provides suggestions for enhancement of Islamic investment opportunities in India. Originality/value - With a sound economic base and with hundreds of companies complying with Shari'ah norms, India offers a huge opportunity for Islamic equity investment. If performance as a parameter is considered, it is observed that Shari'ah- compliant investments, being low in debt and having sound fundamental principles, tend to perform better, hence large non-Muslim investors should take the benefit of these socially responsible and above par performing Islamic investments.