Green finance: A way towards sustainable India

Abstract

Green finance has evolved as a vital instrument in the pursuit of sustainable development and aligning financial systems with environmental objectives. In this current era, when humans are facing challenges due to pollution and other environmental issues, environmentalists and educators recognised the importance of green finance that includes financial practices that promote environmental protection and thus ensures sustainable development. Researchers worldwide are continuously exploring innovative approaches to achieve sustainability. One such approach is green finance. This article is an attempt to offer insights into the progress made, challenges faced, and future directions for green finance in context of Indian economy. It also examines different dimensions of green finance including green banking, green bonds, and green insurance. This study is descriptive in nature. The study concludes that India has achieved considerable progress in green finance to drive sustainable economic growth and address climate change challenges. The development of green bonds increased renewable energy financing, sustainable infrastructure investments, policy support, and international collaborations. Green finance sector in India is in growing phase and it has a long way to go to become a self-sufficient and resilient green economy. It is crucial for our government to have a transparent and encouraging policy framework to realise full potential of green finance as a tool to achieve sustainability.