Impact of Green Finance In India

Abstract

This paper examines the impact of green finance initiatives on environmental sustainability in India amid economic growth and environmental challenges. Green financing by the Government of India reflects its commitment to sustainable development and addressing environmental issues such as pollution, deforestation, and climate change. Through a comprehensive literature review, key areas, and challenges to implementing green finance are identified, including the need for regulatory clarity, innovative financing methods, and effective collaboration between government levels. Research objectives include evaluating the impact of green finance on environmental performance, comparing this impact with developing countries, and identifying related challenges and opportunities. The formulated hypothesis aims to determine the positive impact of green finance on environmental sustainability in India. The research methodology involved using panel data analysis to collect and compare data from sources such as the Reserve Bank of India and the Ministry of Environment, Forestry and Climate Change. In addition, statistical analysis was conducted using the Chi-square test to interpret the questionnaire responses. The results show significant differences in the perception and impact of green finance between India and other developing countries. The paper concludes by highlighting the importance of timing, partnerships, regulatory transparency, and government support in developing green finance for sustainable development in India. Future research includes analysing the economic impact of green finance and exploring the role of innovation in supporting sustainable practices. India has experienced significant economic growth in recent years, but has also faced environmental challenges such as pollution, deforestation and climate change. In response, the Indian government has implemented measures to promote sustainable development and reduce carbon emissions, leading to the adoption of green finance. Green finance refers to financial resources allocated to mitigating climate change and supporting sustainable projects. The goal is to increase financial flow in the economy by prioritizing sustainability.