The United Kingdom was at the forefront of opening Islamic windows in its financial system with the objective of achieving financial inclusion of Muslims without compromising their value systems. India refused to think in that direction with its large Muslim population being excluded from financial deepening, which is a crucial pillar of poverty reduction. The consequent lower business potential of districts with a higher proportion of Muslim population has led to lower branch density and loan rates, affecting the general population as well. Jammu and Kashmir, in districts where the proportion of Muslims is higher, also reflects these trends observed in other states.
