Trajectory of Green Bonds in India

Green bonds have become a vital financial instrument to facilitate India’s shift towards a sustainable economy during the era of fast growth and environmental degradation. This qualitative research paper investigates the path of green bonds in India, analyzing their development, drivers, challenges, and prospects in an explanatory context. Based on secondary data from government reports, policy documents, and scholarly literature, the research identifies important milestones, including the 2015 launch of green bonds and the 2022 Sovereign Green Bond (SGrB) issuance. Results indicate that policy support, investor demand, and environmental necessity fuel growth, while awareness gaps, high costs, and standardization challenges hinder scalability. The research highlights green bonds’ viability as the cornerstone of India’s climate finance approach and presents implications for policymakers and stakeholders to scale up their use. This research advances the body of knowledge regarding the application of green bonds towards fulfilling India’s sustainability aspirations within a developing economy environment.