Towards a Sustainable Future: Understanding the Drivers and Barriers of Green Bonds in India

Abstract

The Indian green bond market, while still nascent, is gaining traction as an essential instrument for promoting sustainable development. This research utilizes content analysis technique, examining secondary data sources like policy documents, corporate reports, and scholarly publications to identify the main drivers and obstacles affecting the growth of this market. The analysis uncovers that the key drivers are government support, corporate sustainability initiatives, and technological advancements. Nevertheless, obstacles like the absence of standardized definitions, high issuance costs, and limited investor awareness persist. The study recommends policy interventions focused on standardization, cost reduction, and investor education to fully harness the potential of green bonds in India, thereby contributing to the nation's sustainable development goals and international climate action efforts.