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Business Strategies for the Muslim World
  
 
April 2008: Rabi-II 1429: Issue 25 
 

 

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Indian Muslims Inc.
Their Market & Global Business Impact

Demographics & State of the Community  


Special Report
Posted June 18, 2007

As estimated by the World Fact Book, in 2007 Muslims in India form about 13.4% (151 million) of India’s 1.13 billion population. According to the last Indian Census in 2001, the population of Indian Muslims was 138 million.

The largest concentrations--about 47% of all Muslims in India, according to the 2001 census--live in the 3 Northern states of Uttar Pradesh (30.7 million having famous Muslim urban centers of Aligarh, Luckhnow, Allahabad), West Bengal (20.2 million, with Calcutta as its urban center), and Bihar (13.7 million, with Patna as its urban center).

Meanwhile, the Indian administered territory of Jammu & Kashmir is the only state with a Muslim majority at 67% and a total population of 6.8 million.

Other major Muslim concentrations are in the South and Western States of India—Maharahstra (10 million, with Mumbai as its main urban center), Andhra Pradesh (7 million with Hyderabad as its largest urban center) and Kerala (8 million.)

Muslims are generally more educated, urban, integrated and prosperous in the Western and Southern states of India than in the Northern and Eastern ones.

Click to view complete Photo Journal

The Sachar Report:

In November 2006, the Rajinder Sachar Committee, appointed by Prime Minister Manmohan Singh of India produced the first ever national report on social, economic and educational status of the Muslim community of India. This report called the ‘Sachar Report’ had the following key findings:

On Education,

  • The literacy rate among Muslims in 2001 (59.1%) was far below the national average (65.1%).In the premier colleges in the country, only one out of the 25 Under-Graduate students (4%) and one out of 50 Post-Graduate students (2%) was a Muslim.
  • Muslims are grossly underrepresented in the elite Indian Institutes of Management (IIMs) and the Indian Institutes of Technology (IITs). In 2005-6 Muslims were only 1.3% of the total number of students in all the IIM courses. In case of the IITs, out of 27,161 students enrolled in all the courses, only 894 (3.3%) were Muslims.
  • Meanwhile, only 3% of Muslim children among the school going age go to Madrasas.

On Economics,

  • According to the report, the unemployment rate among Muslim graduates is the highest among all socio-religious communities.
  • Also, representation of Muslims is very low in banks, universities and government departments and does not match their population share. Their share as police constables is only 6%, in health 4.4%, in transport 6.5%.
  • At the same time, Muslim workers are engaged more in self employed manufacturing and trade activities (A National Sample Survey states that 49% Muslims in India are self employed compared to 36% Hindus and 27% Christians.)
  • The average amount of bank loans disbursed to Muslims is 2/3 of the amount disbursed to other minorities. In some cases it is half.
  • There are about 500,000 registered Waqfs with 600,000 acre land, and Rs 6,000 crore (approx. US $1.5 billion) book value supporting various Muslim institutions. However, the gross income from all these properties is only 163 crores i.e. 2.7%.

On Infrastructure,

  • Compared to the Muslim majority areas, the areas where fewer Muslims inhabited had better roads, sewage and drainage and water supply facilities.

On Women,

  • The very low participation of Muslim women compared to other socio-religious communities in economic activity is one of the important highlights of the Report. While overall about 44 % of women are engaged in economic activity, the figure for Muslim women is 25% overall and as low as 18% in urban areas. This is bound to adversely affect the overall economic status of the community.

The Sachar Report’s overall conclusions present a damning picture of the status of Muslims in India. However this government sanctioned report is not without its controversies.

Shafeeq Rahman, Research Coordinator, at Indiastat.com shares his sentiments saying, “Indeed it is a fact that Indian Muslims are in a miserable condition in India and have the discrimination at every level, but they are not much backward as presented in Sachar Committee report.”

“This is a report which was issued by the order of ruling party and this party has the long history of crocodile tears for Muslims. It may well be a political gimmick to create a sense of fear and inferiority among Muslims by political parties in power in view of Muslim vote bank. Further, most of the fact of this story is prepared by sample survey reports and not by census reports. In survey reports anyone can prepare the sample and predict according to its will.”

At the same time, he acknowledges that the report has galvanized the Muslim community to improve their state.  “We can also see the report positively where Muslims realize their situation and have started to think about their rights,” he said.

Also, given the vast diversity of Muslims in India their status varies by region. For example, Ameen Ahsan, an Indian Muslim from the state of Kerala says, “A practicing Muslim (not an extremist) does not have any problem doing business or job in Kerala. But in India as a whole, there might be places where his identity will give him problems--like in Gujarat.”

Kashif-ul-huda, Editor of a popular Indian Muslim community website called IndianMuslims.info (also TwoCircles.net) says, “While there is some discrimination on the community level e.g. neglect of Muslim concentrated area in terms of schools, hospitals, banks etc. there is no lack of opportunity for Muslims in India. You can find them at all levels of any profession, although not proportional to their share in the population.”

Given the contention by many against the accuracy of the Sachar report, we next look at the prosperity achieved by a large number of Muslims in India and the opportunities it presents.

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