Volume : 9, Issue : 3, MAR 2023

DRA ANNUAL NATIONAL CONFERENCE ON RESEARCH, EDUCATION AND SUSTAINABLE DEVELOPMENT: OPPORTUNITIES & CHALLENGES

GREEN BONDS IN INDIA: PROGRESS AND CHALLENGES

JYOTI MALIK, DR. HAREESH KUMAR T

Abstract

Sustainability is an emerging trend and a crucial corporate goal that fuels green business innovation in the current environment. The businesses focus on implementing a green corporate strategy to address environmental challenges. Green bonds are a new and emerging sector of finance that fits nicely under the category of green finance. Green finance is an innovative, cutting-edge financial strategy that financial institutions have embraced that combines environmental conservation and prosperity. Bonds that have been issued by governments, corporations, and other organizations to use the bond proceeds for environmentally friendly initiatives are known as "green bonds." The study examined the progress achieved by the Indian green bond market from the financial year 2017 to 2021 and explored the challenges hampering the growth of the green bond market in India. The study design used is descriptive, and the data is collected through secondary sources: journals, websites, reports, and other published sources. The study concludes that there is no continuous growth in the Indian Green bond market; there are fluctuations. Energy-related projects receive the majority of the proceeds from green bonds. Government-backed entities are not showing much interest in this area. There are many other challenges for the Indian green bond market, like high issue costs, lack of infrastructure, small market size, lack of investor and issuer awareness, and green-washing practices. Therefore, the government and all statutory bodies must encourage efforts to address these issues.

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