Halal Economy

Halal certification is given by private agencies in India to products which are deemed ‘fit for consumption’ in Muslim community. It started initially for food but now has expanded to encompass various products, driven by market demand and export to the Muslim nations. While it important for the minority Muslim consumers to make religion adherent choices, there are concerns about unregulated certification potentially exploiting businesses and consumers. To tackle this Uttar Pradesh Government moved to ban this certification. However this is not a complete solution instead Government oversight through established bodies like FSSAI can ensure transparency and legitimacy in certification, protecting businesses, consumers, and India's export interests.

‘Halal’ is Arabic for‘acceptable’ or ‘permissible’ i.e. those items which can be consumed by people of the Islamic faith, as opposed to ‘haram’ or ‘prohibited’ items. Sharia law permits consumption of only those products which are ‘halal’. Muslims are not allowed to consume products which either contain or are packed in haram objects (e.g. pig fat) as this will be a violation of their faith.

Halal Certification has become important for advertising products as well to attract consumers. Certain conditions are required to be met for items to be certified as ‘Halal’.Halal certification in India is given by private bodies (like Halal India) for large sums of money. This practice of certification is unregulated by the government in India. It came up in market due to demand for halal certified products not only in the Indian muslim community but also for export to Islamic countries specifically the Middle East.

• In 1974: It was introduced for meat to distinguish halal meat from ‘jhatka’ meat which is a means of slaughtering the animals for consumption.
• In1993: This certification has spread from food to even packaging and personal care products, essentially any product the consumer could come in contact with. These include Haldiram namkeen to Dominos pizza. Recently, even a residential apartment complex in Kochi was certified because it was created as per Sharia norms i.e. having designated prayer rooms for men and women and general construction keeping in mind the direction to Mecca.
• Rigid Checks:It is given after auditing the premises where products are being made and testing products in the lab for prohibited substances.
• Big Industry:The certification process has become a billion dollar business. With the spread of Halal certification for every thing, it is being commercialised and monetised by the Certification authorities to exploit consumers and businesses.

While it is not regulated by the Indian government, the Halal India certified products have brand recognition and acceptance by foreign regulators like by governments of Malaysia, Qatar and UAE. Hence there is legitimacy of this certification in the eyes of the muslim community worldwide. This is why, more and more businesses are seeking Halal certification to boost market share.

As this certification spreads to all kinds of products, it has become one of the tools to recognise the needs of a Muslim minority community and makes their access to various goods easier. It is thus an inclusive mechanism, however to ensure the trust in the authenticity of the certification and also that there is no exploitation of businesses by certifying authorities, oversight is needed.

Uttar Pradesh Government Halal Ban: In November 2023, the Uttar Pradesh government banned manufacture, storage, distribution and sale of Halal certified products, exempting those which are meant for export.

There is a need to ensure government regulation through Food and Safety Standards Authority of India (FSSAI) and under the scrutiny of Government to ensure that there is no exploitation of businesses who are being given this certification. There is a need to protect the interest of the business, consumers and all other stakeholders including India’s exports across the world. While an outright ban, like done by the Uttar Pradesh government is a stop gap solution, there is need to review and reform the certification process for longterm growth of the Halal Economy.