Relevance of Islamic Economic Measures in Achieving Inclusive Growth In Muslim Minority Countries

The study examined the performance of interest-free financial institutions and Zakah committees in Kerala, India; and assessed its role in achieving inclusive growth among its beneficiaries in the state, using both secondary and primary data collected from 25 IFFI and Zakah committees each and random samples of their 100 beneficiaries each during May- July 2011. The findings revealed distinct methods of raising funds under the two systems. Zakah units provided non-refundable financial assistance with no collaterals attached, while the IFFI demanded different types of collaterals to ensure repayment for further distribution of the same. This led to financial inclusion of a larger number of the poorest and needy in the society under the two interest-free systems. The two beneficiaries’ background revealed it to be male dominated. Given its funding principles, the Zakah catered to more socially and economically backward individuals compared to the IFFI. The major problems confronted in ob