A Study On Green Bonds In India: Opportunities And Challenges

Green Bonds have emerged as a crucial tool in mobilizing capital for environmentally sustainable projects. In India, the green bond market has witnessed consistent growth since its inception in 2015, bolstered by increasing awareness of climate change and proactive government support. While numerous studies have examined the Indian green bond market up to 2023 and a few extended their analysis to August 2024-no comprehensive research has yet incorporated full year 2024 data. As a result, recent developments- such as the municipal green bond issuances by Ahmadabad and Vadodara in early 2024, and the sectoral distribution patterns of sovereign green bonds - remain largely unexamined. This study addresses this significant gap by examining secondary data from 2015 to the end of 2024, offering one of the first comprehensive, data driven investigations into the latest patterns, opportunities and challenges in India’s green bond landscape. Specifically, it reviews issuance volumes along with year- on- year growth trends, assesses policy initiatives and explores sectoral shifts. This paper concludes with policy recommendations to enhance the green bond ecosystem in India.