Title: Green bonds: driving sustainable investment in India

Authors: Surmai Sharma; Roopali Sharma; Diksha Sinha

Addresses: Department of Business Administration, Manipal University Jaipur, Jaipur, 303007, India ' Department of Management, Birla Institute of Technology, Mesra, Off Campus Jaipur, Jaipur, Rajasthan, 302017, India ' Department of Management, Birla Institute of Technology, Mesra, Off Campus Jaipur, Jaipur, Rajasthan, 302017, India

Abstract: Tackling climate change demands unprecedented global collaboration. The World Bank Group supports developing nations in fostering sustainable solutions, particularly in finance. In India, sustainable finance - investment integrating environmental, social, and governance (ESG) factors - has emerged as essential. Green bonds, a popular fixed-income instrument, play a pivotal role in funding climate-related projects. This paper examines India's green bond market by analysing its growth relative to global trends, conducting a sector-wise review, and projecting future developments in the Indian financial landscape. Descriptive research, based on secondary data, utilises statistical tools like frequency and trend analysis to achieve its objectives. The study highlights the growing significance of green bonds in aligning India's financial sector with sustainability goals. It concludes with actionable recommendations, emphasising that green bonds have the potential to transform India's financial and fiscal frameworks, making them instrumental in driving sustainable economic growth.

Keywords: green bonds; sustainability; Indian financial market; sustainable investment; climate change.

DOI: 10.1504/AJFA.2026.151477

American Journal of Finance and Accounting, 2026 Vol.9 No.1, pp.35 - 47

Received: 13 Nov 2024
Accepted: 03 Nov 2025
Published online: 02 Feb 2026 *

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