EVALUATING THE PERFORMANCE OF GREEN BONDS IN THE INDIAN FINANCIAL MARKET

Abstract

India’s green bond market has expanded rapidly in the past decade as the country seeks to finance renewable energy, sustainable infrastructure, and climate adaptation projects. This paper evaluates the performance of green bonds in the Indian financial market by analysing issuance trends, yield behaviour, pricing patterns, and investor participation. Using real secondary data from RBI, SEBI, Climate Bonds Initiative (CBI), and major Indian issuers such as SBI, IREDA, and REC, the study compares green bonds with traditional bonds to assess whether Indian green bonds exhibit a “greenium,” attract higher investor demand, or offer competitive returns. The analysis highlights that while green bonds in India have grown substantially, pricing advantages are more evident for sovereign issuances than corporate ones. The paper concludes with insights into market maturity and recommendations for strengthening India’s sustainable debt ecosystem.