ABSTRACT
This chapter discusses the development and nature of Islamic economics and overly mainstream leaning in the light of a new field of maturing Islamic socioeconomic reasoning. The study of Islamic economics started in India under the then demand by Islamic movements and scholars in the Indian subcontinent to enhance a distinct socioeconomic manifesto of economic, social and political arrangement. The cry for Islamic economics was thus central among the Islamic movement of the Jamat-e-Islami. Studies in consumer theory have relied on all the aspects of mainstream economic theory of consumer behaviour. Islamic values, such as, moderation, responsibility and Shari’ah recommended goods while avoiding forbidden ones. Reference to Tawhidi axiomatic premise has been ignored. Tawhid means the Oneness of God as the Absolute in Knowledge, the Creator and Cherisher of the universe. In the Islamic theory of the firm, all the aspects of an optimal firm and resource allocation methods are invoked.
