Green Finance and Sustainable Economic Growth: A Theoretical Analysis of India’s Key Sectors

Abstract: Green finance has emerged as a transformative mechanism that aligns economic growth with environmental sustainability. In India, where rapid industrialization and urbanization are exerting pressure on natural resources, green finance plays a crucial role in promoting low-carbon and climate-resilient development. This paper examines the theoretical foundations and conceptual linkages between green finance and sustainable economic growth, with a focus on India’s key sectors, including energy, transport, manufacturing, and agriculture. Through a review of contemporary literature, the study highlights how financial instruments, such as green bonds, green credit, and sustainability-linked investments, contribute to achieving the Sustainable Development Goals (SDGs). The paper concludes that effective policy frameworks, regulatory support, and increased private participation are essential for expanding the green finance ecosystem in India.