Analytical study of challenges of zakat distribution in India

Abstract

Poverty is a very challenging phenomenon in the contemporary world. To address this phenomenon United Nation set some Millennium Development Goals in 2000. But these MDG could not bring any significance change in the lives of poor. To the date more than 1.2 billion people are living under the poverty. However, Islam has addressed this issue in a very effective manner under the concept of Zakat. It has proved its efficiency several times in the history. Some Muslim majority countries are trying to adopt Zakat as a tool of alleviation and eradication of poverty but there are still some challenges. In this study, these challenges were determined to examine the situation of Zakat distribution in India. In India, there is no formal way to manage Zakat. It is distributed in unorganized, chaotic and on individual basis. This study is all about to find out and analyze the challenges of Zakat distribution in India. This study came up with some challenges such as absence of accountability and transparency. Secondly, the system of Zakat collection and distribution is very conventional and outdated. Thirdly, thehuge amount of fund goes to Madaris which do not serve purpose of Zakat. As a result, poor and needy stay deprived and their economic situation is exacerbating day after another day. Fourthly, Zakat is distributed randomly. There is complete absence of planning and strategy of allocation of Zakat fund. Finally, People are losing trustworthiness from the Zakat managers. These are the main challenges of ineffectiveness of Zakat distribution in India. This study has made some recommendations to manage Zakat in better way.