Sustainable Finance in India: Trends, Challenges, and Development Prospects

DOI

10.2991/978-94-6239-772-9_17How to use a DOI?

Keywords

Green Finance; ESG; Sustainable Investment; Trend Analysis; SWOT; Green Bonds; RBI; SEBI; Secondary Data

Abstract

Green finance Acts is a means to enable India’s journey towards a sustainable and low carbon economy. It involves the investing of monies into green projects such as renewable energy, clean transportation and environmentally friendly infrastructure. The emergence of the green finance industry in India has also been gaining momentum with the growth of the weather obligation contracts under the umbrella of the world's agreements such as the Paris Agreement. The paper is directed towards the analysis of the current development trend, growth trend, problem areas and the opportunities in the Indian context in green finance. The study has been conducted on the basis of pure secondary research and the sources used have been the reports published by RBI, SEBI, etc., consulting firms like Deloitte and McKinsey. The authors will examine the development of the green financial instruments, such as green bonds or green funds based on ESG, using the trend analysis, which will analyze the development of these financial instruments within the years of 2015 to 2025. It also uses SWOT analysis to explore the factors impacting the external and internal environment of green finance ecosystem in India. The lessons indicate that the support of the principal policy and the increasing interest of the investors are not devoid of difficulties arising from the following: poor awareness, regulatory laxity and lack of green investment provision. The article provides Realistic recommendations and deliberations to project an image of the policymakers, investors and financial bodies to change the frame of green finance in India and reorient it towards long-term viable goals.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - J. V. Balasubramanian
AU  - Divya Thankom Varghese
AU  - S. Ayyappan
AU  - Mayan. K. Sreerudran
PY  - 2026
DA  - 2026/09/07
TI  - Sustainable Finance in India: Trends, Challenges, and Development Prospects
BT  - Proceedings of the 2nd International Conference on Innovations and Challenges in Financial Technology (ICICFT 2025)
PB  - Atlantis Press
SP  - 208
EP  - 217
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-772-9_17
DO  - 10.2991/978-94-6239-772-9_17
ID  - Balasubramanian2026
ER  -