Green Finance in India: An Initiative Towards Sustainable Development

Abstract

India’s economic growth is noteworthy; however, it encounters considerable environmental challenges such as pollution, deforestation, and climate change, all of which adversely affect public health and economic advancement. In response, the government has implemented strategies focused on sustainable development and the reduction of carbon emissions, placing a strong emphasis on promoting green finance—investments that prioritize environmental sustainability and social responsibility. This approach to financing is increasingly recognized as essential for tackling climate change and fostering sustainable development. Recently, there has been a notable increase in green finance initiatives, supported by collaboration among financial markets, banks, investors, microfinance institutions, insurance companies, and government entities. There is a growing emphasis on eco-friendly technologies, green bonds, and climate-resilient blue economies. Additionally, public sector financing should align with the environmental goals set forth in the Sustainable Development Goals (SDGs).