Green Finance in India: Policies, Instruments and Prospects for Sustainable Development

Abstract

Green finance has emerged as a critical tool for mobilising capital towards climate-friendly and sustainable development goals in India. As the country pursues ambitious targets for renewable energy, net-zero emissions, and sustainable infrastructure, understanding the institutional frameworks, financial instruments, challenges, and opportunities surrounding green finance is essential. This article provides a comprehensive review of the evolution and current landscape of green finance in India, examines key mechanisms such as green bonds and climate finance, and discusses policy initiatives, barriers to growth, and future pathways for sustainable finance.