Investor Perception and Awareness of Green Bonds in Vadodara

The increasing global emphasis on sustainable development has positioned green bonds as a vital financial instrument for funding environmentally responsible projects. In India, despite significant growth in the green bond market since its inception in 2015, retail investor participation remains limited. This study investigates the level of awareness, perception, and investment behaviour of individuals toward green bonds, with a specific focus on the Vadodara region. A descriptive research design was employed, and primary data were collected through a structured questionnaire from 565 respondents, comprising postgraduate students, young professionals, and early-stage investors. The study utilizes quantitative techniques, including frequency and percentage analysis, to evaluate awareness levels, knowledge intensity, perception of risk and return, and key determinants influencing investment decisions. The results indicate that while 54.3% of respondents are aware of green bonds, their level of understanding remains moderate. Despite limited knowledge, most respondents exhibit a positive perception toward green bonds, particularly regarding their contribution to environmental sustainability and climate change mitigation. However, actual investment participation is low, primarily due to factors such as lack of detailed information, concerns about transparency and credibility, perceived risk-return uncertainty, and limited accessibility for retail investors.