India’s Muslim population is 150 millions, making it the country with the second-largest Muslim population, after Indonesia. Indian Muslims experience serious disadvantages, low literacy and high poverty rates. Muslims, make up 13.4% of India’s population, yet hold fewer than 5% of government posts and make up only 4% of undergraduates in universities.

The Union budget 2010-11 has made 50% higher allocation to the minority affairs ministry — up from Rs 1,740 crore to Rs 2,600 crore. The Reserve Bank of India is now focusing on 121 backward minority districts with high Muslim population, as identified by the minority affairs ministry.  Public sector banks, disbursed a Rs 82,864 crore in loans to minorities during 2008-09. In 2008-09, the Reserve Bank’s target was that 13% of loans under priority sector lending should go to minorities and banks were able to lend 12.4%. In 2007-08, when the target was 10.6% and actual sanctions 9.6%.  Banks also opened 524 branches in minority concentration districts in 2009.  In 2008, 523 branches were set up. The UPA government has earmarked a whopping Rs 7,000 crore for minority welfare under the 11th Five Year Plan that concludes in 2012.

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