CHALLENGES AND OPPORTUNITIES FOR SUSTAINABLE INDUSTRIAL DEVELOPMENT IN INDIA'S FINANCIAL SECTOR

J Kumar; D Shobana

doi:10.55955/410002

Authors

Dr. J. Suresh Kumar Department of Economics, St. Joseph University, Chumukedima, Nagaland https://orcid.org/0000-0002-9659-4813
Dr. D. Shobana Department of Management Studies, St. Joseph University, Chumoukedima, Nagaland

DOI:

https://doi.org/10.55955/410002

Keywords:

Sustainable Finance, Green Financing, Financial Markets, Industrial Sustainability and Industrial Growth

Abstract

Sustainable industrial development in India faces significant challenges and opportunities within the financial sector. This study explores the interplay between financial markets and sustainable practices in industries, emphasizing the need for financial instruments that support environmental sustainability. Key challenges include limited access to green finance, inadequate regulatory frameworks, and a lack of awareness among businesses regarding sustainability practices. Moreover, the current financial institutions frequently emphasize immediate profits rather than long-term sustainability objectives. However, opportunities for enhancing sustainable industrial development exist through the promotion of green bonds, impact investing, and public-private partnerships. By analyzing case studies and relevant literature, this research highlights successful initiatives that have leveraged financial markets to foster sustainability in industrial practices. The findings suggest that aligning financial incentives with sustainable development goals can significantly contribute to the growth of green industries in India. This study provides valuable insights for policymakers and financial institutions aiming to promote a more sustainable industrial landscape.

References

Bansal, P., and Sharma, A. (2021). The role of technology in promoting sustainable finance. Journal of Sustainable Finance & Investment, 11(1), 56-70.

Bansal, R., & Kumar, P. (2023). Public-private partnerships and sustainable development: A comprehensive review. Journal of Sustainable Development, 45(1), 34-50. https://doi.org/10.1016/j.susdev.2023.01.005

Bansal, R., & Kumar, P. (2023). Sustainable industrial growth in emerging economies: The role of policies and frameworks. Journal of Industrial Sustainability, 18(3), 145-162. https://doi.org/10.1016/j.jisus.2023.01.009

Bapat, P. (2021). Sustainable finance: The role of Indian financial institutions. Journal of Banking and Finance in India, 45(3), 134-150. https://doi.org/10.1016/j.jbankfinind.2021.03450

Bhandari, P. (2019). Regulatory challenges in promoting sustainable finance in India. Asian Journal of Policy and Governance, 10(2), 45-56. https://doi.org/10.1080/ajpgov.2019.2546 DOI: https://doi.org/10.4314/jsdlp.v10i1.3

Bhat, V., & Patel, R. (2022). Navigating the regulatory challenges in India's public-private partnerships. Indian Infrastructure Journal, 29(4), 23-36. https://doi.org/10.1201/iiij2022.104

Bhat, V., & Singh, M. (2023). Environmental impacts of India's Perform, Achieve and Trade (PAT) scheme: A case study. Environmental Policy and Governance, 33(2), 234-248. https://doi.org/10.1002/env.2679

Bhattacharya, N., and Patel, K. (2020). Public-private partnerships for sustainable development: Case studies from India. Journal of Sustainable Development, 14(3), 101-119.

Bhattacharya, S., and Patel, A. (2020). Public-private partnerships and green infrastructure in India: Opportunities for sustainable growth. Journal of Green Business, 11(2), 90-105.

CDP. (2024). Shaping a Sustainable Financial System: Country Profile India. Retrieved from https://cdn.cdp.net/cdp-production/comfy/cms/files/files/000/005/135/original/Sustainable_financial_system_Country_Profile_India.pdf

Chakraborty, A. (2021). Challenges in implementing sustainable industrial policies in India. Economic and Political Weekly, 56(12), 42-48.

Chakraborty, S. (2020). Institutional challenges in financing green projects in India. International Journal of Sustainable Development, 13(3), 115-132.

Choudhury, P., and Saha, R. (2020). Financing sustainable development: The role of financial markets in India. Journal of Sustainable Finance & Investment, 10(1), 30-45. https://doi.org/10.1080/20430795.2019.1629124

Choudhury, R., and Saha, M. (2020). Regulatory gaps and sustainable finance in India: A critical review. Economic and Political Weekly, 55(15), 24-32.

Climate Bonds Initiative. (2021). India Green Bond Market Update. https://www.climatebonds.net/

Cui, Y., Geobey, S., Weber, O., & Lin, H. (2018). The impact of green lending on credit risk in the banking sector. Sustainability, 10(6), 2005. https://doi.org/10.3390/su10062005 DOI: https://doi.org/10.3390/su10062008

Dasgupta, R. (2020). Energy dependency and the green transition: Implications for India’s financial sector. Energy Policy Review, 52(1), 67-82. https://doi.org/10.1016/j.enpolrev.2020.67

E3S Web of Conferences. (2024). Sustainable Banking Practices: Impact, challenges and opportunities. Retrieved from https://www.e3s-conferences.org/articles/e3sconf/pdf/2024/86/e3sconf_rawmu2024_01031.pdf DOI: https://doi.org/10.1051/e3sconf/202455601031

Financial Times. (2024). India is overlooking the climate drag on its economic growth. Retrieved from https://www.ft.com/content/927a4c8b-db4c-4a46-af68-71c5a03452ab

Flammer, C. (2021). Corporate green bonds. Journal of Financial Economics, 142(2), 499-516. https://doi.org/10.1016/j.jfineco.2020.07.008 DOI: https://doi.org/10.1016/j.jfineco.2021.01.010

Garg, R., and Mishra, P. (2019). The role of digital technology in sustainable finance: A review of applications and potential in India. Technology and Innovation Journal, 15(1), 23-37.

Ghosh, A. (2021). The rise of ESG investing in India: Opportunities and challenges. Indian Journal of Corporate Governance, 14(2), 101-115.

Ghosh, A., & Choudhury, S. (2023). The role of green bonds in financing sustainable industrial growth in India. Journal of Sustainable Finance, 12(4), 187-201. https://doi.org/10.1016/j.josf.2023.03.011

Ghosh, A., and Mukherjee, S. (2020). The awareness and capacity gap in India’s green finance market. Journal of Sustainable Finance & Investment, 12(4), 234-250. https://doi.org/10.1080/JSFI.2020.1234

Gupta, S., & Sharma, A. (2022). Public policy frameworks for sustainable industrial practices in India. Sustainable Development Review, 34(4), 56-70. https://doi.org/10.1108/sdr.2022.022456

Gupta, S., & Singh, R. (2022). Capacity building for public-private partnerships in India. International Journal of Public Administration, 55(3), 141-157. https://doi.org/10.1080/01900692.2022.1236591

International Finance Corporation. (2021). Green finance: A bottom-up approach to sustainable development. Washington, DC: World Bank Group. Retrieved from https://www.ifc.org

Jain, R., & Bansal, P. (2022). Leveraging impact investing for sustainable industrial development in India. Global Impact Investing Review, 9(1), 67-80. https://doi.org/10.1016/j.giir.2022.04.005

Kaur, A., & Patel, R. (2022). The role of energy efficiency programs in promoting sustainability within Indian industries. Energy Sustainability and Society, 15(1), 18-33. https://doi.org/10.1007/s12402-022-0067-1

Kaur, A., & Sharma, N. (2023). The risk perception of private investors in India's infrastructure sector. Asian Economic Policy Review, 18(2), 77-92. https://doi.org/10.1111/aepr.12402

Khan, H., & Tiwari, A. (2021). Capacity constraints in implementing PPPs: A case study in India. Public Administration and Development, 41(2), 111-125. https://doi.org/10.1002/pad.1974

Kumar, P., & Meena, M. (2020). Infrastructure gaps and sustainable development in India. Sustainable Development Review, 32(6), 195-210. https://doi.org/10.1046/j.susdev2020.00609

Kumar, P., & Meena, M. (2021). India's National Policy on Industrial Promotion and its role in sustainable growth. Indian Economic Journal, 69(3), 21-38. https://doi.org/10.1007/s41432-021-00058-x

Kumar, P., & Ranjan, S. (2021). Water supply and sanitation through public-private partnerships in India. Water Resources Development, 37(4), 553-570. https://doi.org/10.1080/07900627.2021.1875368

Kumar, S., and Singh, R. (2021). Regulatory barriers to sustainable finance: A study of the Indian financial sector. Financial Services Review, 30(4), 257-276.

Larsen, G., Smith, C., & Long, J. (2020). Navigating the policy landscape of sustainable finance. Journal of Environmental Economics, 13(2), 124-136.

Mehta, R., & Saini, V. (2022). Regulatory uncertainty in India’s industrial policies and its impact on sustainability. Journal of Policy Analysis, 22(5), 185-201. https://doi.org/10.1002/jpa.1807

Mehta, S., & Gupta, S. (2022). Policy frameworks for public-private partnerships in India: An assessment. Journal of Public Policy, 43(1), 67-84. https://doi.org/10.1002/jpub.2409

Ministry of Environment, Forest and Climate Change. (2022). Report on the Perform, Achieve and Trade scheme. Government of India.

Ministry of Finance, Government of India. (2021). Report on financing sustainable development in India. Retrieved from https://www.finmin.nic.in

Nair, K., & Saha, R. (2021). The influence of impact investing on industrial sustainability: Case studies from India. Sustainable Development Finance, 14(2), 112-124. https://doi.org/10.1016/j.sdf.2021.07.009

Narain, P., and Khosla, R. (2019). Aligning finance with sustainability in India: The way forward. Economic and Political Weekly, 54(12), 48-55.

OECD. (2020). Developing sustainable finance markets: A guide for policymakers. Paris, France: Organisation for Economic Co-operation and Development.

Patel, R., et al. (2023). Waste management solutions through PPP models: Insights from Indian cities. Environmental Management Review, 29(1), 77-92. https://doi.org/10.1016/j.enm.2023.01.005

Patil, A., & Joshi, M. (2021). Technological innovation for sustainable industrial practices: A case study of India's manufacturing sector. Technology in Society, 63, 120-137. https://doi.org/10.1016/j.techsoc.2021.101580

Raja, V., et al. (2023). Public-private partnerships in India's sustainable development agenda. Sustainability Studies Journal, 9(3), 35-48. https://doi.org/10.1007/sus.2023.30105

Ranjan, S., and Jha, S. (2020). Policy frameworks for green finance in India: A critical review. Indian Journal of Environmental Law, 14(3), 23-35.

Rathi, P., & Kaur, A. (2021). Overcoming policy implementation gaps in sustainable industrial growth. Environmental Development and Sustainability, 23(6), 1271-1288. https://doi.org/10.1007/s10668-021-01354-4

Ravi, S., and Mishra, R. (2021). Green bonds in India: Current status and future prospects. Journal of Environmental Management, 290, 112585.

Reddy, P., & Kumar, P. (2023). Waste-to-energy and the role of public-private partnerships in India. Renewable Energy Policy and Development, 12(4), 105-120. https://doi.org/10.1016/j.renepol.2023.02.007

Reddy, R., & Mehta, S. (2021). Climate change adaptation strategies in India: The role of PPPs. Climate Policy Review, 28(5), 189-204. https://doi.org/10.1111/clp.2439

Reddy, S., & Kumar, P. (2022). R&D and technological innovations in clean energy: The role of the National Clean Energy Fund. Renewable and Sustainable Energy Reviews, 98, 88-104. https://doi.org/10.1016/j.rser.2021.107286

Reddy, S., & Nair, V. (2023). Impact investing and its role in promoting sustainable industries in India. Impact Investment Review, 15(3), 142-160. https://doi.org/10.1007/ii.2023.0036

Reuters. (2024). India proposes to expand sustainable framework in securities market. Retrieved from https://www.reuters.com/world/india/india-proposes-expand-sustainable-framework-securities-market-2024-08-16/

Saini, A., & Rathi, P. (2021). Long-term commitments in public-private partnerships for sustainable development in India. International Development Review, 33(2), 78-92. https://doi.org/10.1002/idr.2253

Saini, A., & Verma, R. (2022). Cleaner technologies for sustainable industrial growth: A policy review. Sustainable Development, 31(3), 387-402. https://doi.org/10.1002/sd.2220

Saxena, R., & Joshi, M. (2021). Sustainable urban development through PPPs: Lessons from the Smart Cities Mission. Urban Development Review, 25(2), 29-45. https://doi.org/10.1016/j.udr.2021.04.003

Sethi, R., Sharma, N., & Singh, R. (2022). Resource efficiency through cleaner technologies in India’s industrial sector. Journal of Cleaner Production, 264, 121546. https://doi.org/10.1016/j.jclepro.2020.121546

Shah, R. (2021). Fintech and green finance in India: Technological solutions for sustainability. International Journal of Financial Innovation, 6(2), 91-102. https://doi.org/10.2139/ijfi2021.1567

Shakti Foundation. (2024). Enhancing Economic Growth and Sustainable Development in India. Retrieved from https://shaktifoundation.in/enhancing-economic-growth-and-sustainable-development-in-india/

Sharma, A., and Rao, K. (2019). Green finance and its role in sustainable industrial development in India. Indian Journal of Economics and Business, 18(3), 123-137.

Sharma, M., & Gupta, P. (2022). The role of green financing in renewable energy: An analysis of green bonds in India. Renewable Energy and Finance Journal, 10(2), 45-58. https://doi.org/10.1016/j.rejf.2022.05.004

Sharma, M., & Gupta, P. (2023). National Manufacturing Policy: Progress and challenges. Manufacturing and Industry Journal, 11(2), 45-59. https://doi.org/10.1007/mi.2023.0037

Sharma, R., and Rao, D. (2019). Impact investing and sustainable industrial practices: The Indian scenario. Journal of Sustainable Finance & Investment, 12(1), 120-135.

Sharma, S., & Agarwal, R. (2021). Public-private partnerships in sustainable development: A case study from India. Journal of Environmental Policy & Planning, 23(4), 423-439. https://doi.org/10.1080/1523908X.2021.1872457

Sharma, S., & Rathi, A. (2023). Delhi Metro: A model of successful public-private partnerships. Transportation Policy Review, 9(1), 13-29. https://doi.org/10.1016/j.trans.2023.02.002

Singh, A., & Patil, A. (2021). Solar energy development through public-private partnerships in India. Renewable Energy and Environmental Sustainability, 39(3), 244-259. https://doi.org/10.1016/j.rees.2021.03.010

Singh, A., and Gupta, S. (2021). Growth of the green bond market in India: Challenges and opportunities. International Journal of Finance and Economics, 45(2), 234-249.

Singh, P., and Gupta, R. (2021). Green bonds in India: An emerging tool for sustainable industrial growth. Journal of Financial Markets and Policy, 8(2), 201-215.

Singh, R., & Rathi, V. (2022). Make in India initiative and its contribution to sustainable industrial growth. International Journal of Business and Industrial Policy, 24(4), 59-71. https://doi.org/10.1016/j.ijbip.2022.01.003

Singh, R., & Sharma, S. (2022). Policy frameworks for PPP in renewable energy: A case study from India. Energy Policy Journal, 56(5), 78-91. https://doi.org/10.1016/j.epj.2022.01.006

Sinha, R., and Shome, D. (2020). Challenges in accessing green finance in India. Journal of Development Economics, 30(3), 115-128.

Sinha, S., Tiwari, R., & Gupta, R. (2021). Sustainable finance in emerging markets: An Indian perspective. Indian Journal of Environmental Research, 15(3), 89-102.

Tiwari, R., and Kumar, A. (2020). Digital divide and its impact on access to sustainable finance. International Journal of Sustainable Development, 13(2), 67-83.

Tiwari, S., and Kumar, V. (2020). The digital divide and its impact on sustainable industrial growth in India. Journal of Rural Development Studies, 35(4), 67-79.

UNEP Finance Initiative. (2021). Principles for responsible banking: A framework for sustainable finance. Geneva, Switzerland: United Nations Environment Programme. Retrieved from https://www.unepfi.org

Verma, K., & Sharma, M. (2023). Financial support mechanisms for public-private partnerships in India. Infrastructure Finance Review, 15(2), 45-60. https://doi.org/10.1108/IFR.2023.00020

Verma, K., et al. (2021). The role of financial mechanisms in supporting green industrial practices in India. Environmental Finance Review, 18(3), 199-212. https://doi.org/10.1016/j.efr.2021.06.014

Verma, N., and Gupta, A. (2022). Public-private partnerships for sustainable development in India: A case study approach. International Journal of Public Policy, 16(4), 101-117.

Verma, S., & Sharma, R. (2022). Financial returns and environmental benefits of green bonds in India. Financial Markets and Sustainable Development, 8(1), 22-35. https://doi.org/10.1007/fmsd.2022.0014

Vyas, M. (2022). Barriers to green finance for small and medium-sized enterprises in India. Journal of Industrial Sustainability, 18(4), 56-73.

Vyas, V. (2022). Challenges in mobilizing financial resources for sustainable industries in India. International Journal of Sustainable Development & World Ecology, 29(6), 561-573. https://doi.org/10.1080/13504509.2021.2002265