Exploring Prospects for Innovation in India's Financial System via Green Financing

Abstract

Green financing (GF) allows countries to foster economic growth while promoting environmentally sustainable practices through innovative advancements in the financial sector. This concept warrants examination in countries like India. The paper evaluates the potential of GF in India. Findings reveal a predominant focus on renewable energy within India's green financing landscape, followed by the construction and transportation sectors. However, the growth of green bonds, a key financial instrument, is hindered by their low credit rating. To foster the development of GF, a collaborative effort among government bodies, financial institutions, policymakers, private sector entities, and non-governmental organizations is imperative for market expansion and risk mitigation.