Ref. No. 2735/45-4265
In the name of Allah the most Gracious the most Merciful
The answer to your question is as follows:
India, under the current circumstances, is the country of peace and harmony. It cannot be called Dar-ul-Harb and the laws of Dar-ul-Harb will not apply here. However, the issue of usurious transactions in Dar al-Harb is different. According to Imam Abu Yusuf, it is absolutely illegitimate and according to Imam Abu Hanifa and Imam Muhammad, it is permissible with a few conditions. Prohibition is prescribed in the Qur'anic verses without any condition; Therefore, here in Hanafiate, the school of Jumhoor has priority and there is a fatwa on it. Therefore interest based transactions cannot be justified in India.
الفروق للقرافی میں ہے: فان اختلف العلماء فی فعل هل هو مباح او حرام فالورع الترک۔ (الفرق السادس والعشرون والمئتان من الفروق، ج: ۴، ص: ۲۷۔ ط:عالم الکتب)
الاشباہ والنظائر میں ہے: اذا تعارض الدلیلان احدهما یقتضی التحریم والاخر الاباحة قدم التحریم۔ (القاعدۃ الثانیۃ من الفن الثانی، ص: ۱۰۹،ط: قدیمی)
And Allah knows best
Darul Ifta
Darul Uloom Waqf Deoband