Evolution and Progress of Green Finance in India with Special Reference to Green Bonds

Abstract

India, in order to emerge as a global leader, has the requirement to grow the economy in a holistic approach. Sustainable development(SD) is one of the major concerns in monitoring the development of the nation. Promoting sustainable development requires adequate financial resources for investment. In India, over the last decade, green finance has come to the foreground as an initiative to stimulate SD. This study deals with the lineage of Green Finance in India and tries to throw light on the various Green Finance Instruments available in the Indian Financial Market, and assesses the public awareness regarding green finance in India. This study also highlights progress made by green finance, especially with respect to green bonds(GB), as only a few research studies have been carried out on it exclusively. To investigate the progress made, data was gathered from various secondary sources, i.e., from official websites, particularly of RBI and SEBI, and Journals, research articles, and other websites are also referred to. The findings concluded that with increasing awareness of green finance among the public, designing a better information management system and increasing the coordination amongst contributors of Financial System expedites achievement of sustainable growth, as well as research noted various challenges faced in promotion of green finance. The research also reveals that Green Finance has made monumental progress from past decades. As of late 2024 and through 2025, India stands as the eighteenth largest source of aligned GSS+ debt globally and the fourth largest among emerging markets in terms of cumulative green bond issuance.