Muhammad bin Qasim, the Muslim general who led the Umayyad conquest of Sindh in 712 CE, was the first to treat Hindus as "People of the Book." This was a significant decision at the time, as it allowed local Hindu communities to retain their religious practices under Islamic governance, similar to Jews and Christians. He established administrative tolerance and implemented tax systems like jizya, which were standard for non-Muslim communities recognized under Islamic rule. This approach minimized resistance and facilitated peaceful governance, showing early Islamic principles of religious coexistence.

This recognition of Hindus as "People of the Book" by Muhammad bin Qasim wasn’t just political — it had a lasting impact on Islamic governance in South Asia. It set a precedent for future Muslim rulers to offer religious freedom and structured coexistence to non-Muslim communities. His decision helped reduce conflict, stabilize society, and maintain law and order across the newly conquered region. This early example of religious tolerance remains a notable milestone in Islamic history and is often cited in studies of interfaith relations under Muslim rule.