Greening the Financial System: An Empirical Analysis of Green Finance Initiatives by Financial Institutions and Their Impact on Sustainable Development in India

This study examines the evolution and impact of green finance initiatives undertaken by financial institutions in India and their contribution to sustainable development goals.Using empirical data from 2018-2024, we analyze green lending patterns, bond issuances, and renewable energy financing by major Indian banks and financial institutions.The research employs a mixed-methods approach combining quantitative analysis of financial data with qualitative assessment of policy frameworks.Our findings reveal that green finance in India has grown at a CAGR of 26.5% during the study period, with total green lending reaching ₹5.48 lakh crores by FY 2024-25 (projected).However, this represents only 4.8% of total bank credit, indicating significant room for expansion.The study identifies regulatory support, particularly the Reserve Bank of India's priority sector lending guidelines and SEBI's green bond frameworks, as key enablers.We conclude that while progress is noteworthy, achieving India's climate commitments requires accelerated green finance mobilization, enhanced disclosure norms, and stronger incentive structures for both financial institutions and borrowers.