30, March 2026

Green Finance and Sustainable Investment Trends in Emerging Economies: Evidence from India

VOLUME-10; ISSUE-3; MAR-2026

Author(s): Dr Raghuveer R

Authors Affiliations:

Faculty, MBA
Yuvarajas College (Autonomous), University of Mysore, Mysore

DOIs:10.2017/IJRCS/202603006     |     Paper ID: IJRCS202603006


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Green finance has become a central pillar in promoting sustainable economic growth in emerging economies, particularly in the context of climate change and environmental challenges. This study examines the growth and trends of green finance and sustainable investment in India during the period 2018–2023 using secondary data sources. The research focuses on green bond issuance, ESG (Environmental, Social, and Governance) fund inflows, renewable energy financing, and sustainable banking initiatives. Data were collected from the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), World Bank reports, and international sustainability databases. Employing descriptive and trend analysis methods, the study evaluates the contribution of green financial instruments to capital market development and long-term economic sustainability. The findings reveal a significant rise in sovereign green bonds, ESG mutual funds, and renewable energy investments, supported by regulatory reforms and sustainability disclosure norms. While India demonstrates strong alignment with global sustainable finance frameworks, challenges such as greenwashing risks, lack of standardized ESG metrics, and climate risk integration persist. The study concludes that green finance is emerging as a strategic financial mechanism in India, fostering investment diversification and supporting sustainable development goals. Continued policy consistency and financial innovation are crucial for strengthening sustainable investment ecosystems in emerging economies.

Green Finance, Sustainable Investment, ESG, Green Bonds, Climate Finance, India

Dr. R. Raghuveer (2026); Green Finance and Sustainable Investment Trends in Emerging Economies: Evidence from India, International Journal of Research Culture Society,    ISSN(O): 2456-6683,  Volume – 10,   Issue –  3,  Available on – https://ijrcs.org/

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