Exploring the Role of Economic Instruments in Promoting Green Finance for Sustainable Development in India

Abstract

This paper explores the role of economic instruments in promoting green finance for sustainable development in India. As the world faces escalating environmental challenges, green finance has emerged as a critical tool for driving investments toward sustainable initiatives. In the context of India, which is striving to balance rapid economic growth with environmental sustainability, green finance has become increasingly important. The paper delves into various economic instruments, including tax incentives, carbon pricing, green bonds, and public-private partnerships, which can stimulate investments in green technologies and infrastructure? By examining India's national policies, regulatory frameworks, and the growing green finance landscape, this research highlights the effectiveness and challenges of these instruments. Furthermore, the paper presents case studies of successful green finance projects in India and draws comparisons with global trends, providing valuable insights into the potential for scaling up green finance in the country. Through data analysis, the paper offers an evaluation of the current state of green finance in India and suggests policy recommendations for enhancing its impact on sustainable development. Ultimately, the findings emphasize that a well-designed economic instrument framework is essential for India to achieve its sustainability goals while fostering a green economy.