Proceedings of the 13th International Youth Conference in the series of “Youth for India @2047, AI Disruption and Opportunities: Preparing Youth for Global Challenges (IYC 2026)

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Nexus between Financial Development and Sustainable Development Goals: Evidence from Emerging Economy

Authors
Rishika Khetan1, Shubham Singhania2, *, Rajesh Kumar Sinha3, Varda Sardana4
1Masters Union, Gurugram, Haryana, India
2Fore School of Management, New Delhi, India
3Department of Finance & Accounting, Jaipuria Institute of Management, Jaipur, India
4Department of Finance & Accounting, Jaipuria Institute of Management, Noida, India
*Corresponding author. Email: shubhamsinghania1@gmail.com
Corresponding Author
Shubham Singhania
Available Online 15 May 2026.
DOI
10.2991/978-94-6239-676-0_4How to use a DOI?
Keywords
Financial Development Index; Sustainable Development Goals; Environmental Disclosure; Financial Inclusion; Environmental Issues
Abstract

This study investigates the long-term relationship between Financial Development Index (FDIX) and Sustainable Development Goals (SDGs) in India, along with the causality analysis of the impact so observed. The study employs time series data from 2005-2021 on FDIX and comprehensive SDG scores along with individual SDG scores. It applies the Augmented Dickey Fuller test to check the stationarity of the time series data, followed by cointegration test to study the long run relationship between the two variables (FDIX and SDGs) and the application of vector autoregression (VAR) model. Linear granger causality tests were conducted to study the causal relationship between the two variables. Jarque-Bera tests and eigenvalue stability condition were tested for each VAR model. The findings reveal unidirectional impact of composite SDG score on FDIX after two years, but bidirectional relationship between most of the individual SDGs (except SDG 2, SDG 5 and SDG 16) and FDIX. By pointing out the relationship between FDIX and SDGs, as well as the direction of causality, the findings open scope for exploring various policy-crafting that specifically caters to the requirements of India. This is a seminal paper that employs FDIX data to study the relationship between financial growth and sustainable development in the Indian context. The outcomes are of utmost significance for policymakers, scholars, and financial institution professionals, both domestically and globally.

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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Volume Title
Proceedings of the 13th International Youth Conference in the series of “Youth for India @2047, AI Disruption and Opportunities: Preparing Youth for Global Challenges (IYC 2026)
Series
Advances in Intelligent Systems Research
Publication Date
15 May 2026
ISBN
978-94-6239-676-0
ISSN
1951-6851
DOI
10.2991/978-94-6239-676-0_4How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Rishika Khetan
AU  - Shubham Singhania
AU  - Rajesh Kumar Sinha
AU  - Varda Sardana
PY  - 2026
DA  - 2026/05/15
TI  - Nexus between Financial Development and Sustainable Development Goals: Evidence from Emerging Economy
BT  - Proceedings of the 13th International Youth Conference in the series of “Youth for India @2047, AI Disruption and Opportunities: Preparing Youth for Global Challenges (IYC 2026)
PB  - Atlantis Press
SP  - 37
EP  - 63
SN  - 1951-6851
UR  - https://doi.org/10.2991/978-94-6239-676-0_4
DO  - 10.2991/978-94-6239-676-0_4
ID  - Khetan2026
ER  -