Abstract

The global demand for sustainable development has transformed financial systems compelling countries like India to adopt green finance as a tool for channeling investment into environmentally friendly projects. Green finance integrates environmental social and governance (ESG) considerations into financial decision-making linking economic growth with ecological sustainability. This paper examines the evolution and current practices of green finance in India highlighting the role of policy frameworks institutional investors and sustainable investment vehicles. It explores key instruments such as green bonds ESG funds renewable energy financing and sustainable banking practices. The study underscores how green finance supports India’s climate commitments under the Paris Agreement and the Sustainable Development Goals (SDGs).