The modern history of Islamic economics in India starts with the first quarter of the twentieth century.
It came as a response to the challenge of modern economic thought and socio-economic movements of the West. In its early phase, exposition and articulation of the Islamic approach to major economic problems and challenges started at the hand of Ulama and concerned Muslim Scholars. Later on professional economists who were also well versed in Shariah sciences joined hand. But these efforts were generally at individual level. Hardly any organized collective efforts were made to develop and propagate Islamic economics.
India is a large country with more than 250 universities many of which have people interested in Islam and Islamic economics and need an all India organisation to provide them help and guidance in this direction. The foundation of Indian Association for Islamic Economics (IAFIE) is a turning point in the history of Islamic economics in this country. At the initiative of Dr. Abdul Azim Islahi, Dr. Javed Ahmad Khan and Dr. Valeed Ahmad Ansari in September 1990 "The Indian Association for Islamic Economics" was founded under the guidance of Professor Muhammad Nejatullah Siddiqui and patronship of Dr. FazIur Rahman Faridi.
The Association has a consultative democratic (Shura) set-up. It is a non-commercial voluntary organization. Its membership is open to every Indian who agrees with its aims and objectives. At present the Association has over hundred members all over the country in addition to its chapters that have their own local members.