Sustainable investment is gaining momentum in India, driven by increasing awareness of environmental, social, and governance (ESG) factors. Investors are recognizing the importance of aligning their portfolios with sustainable practices, leading to a rise in socially responsible investing (SRI).

Financial institutions are responding to this trend by developing green bonds and ESG-focused mutual funds. These products allow investors to support projects that have a positive impact on society and the environment while generating returns. The government’s commitment to sustainability, exemplified by initiatives like the National Action Plan on Climate Change, has further fueled interest in sustainable investment.

The corporate sector is also adapting to this shift, with many companies incorporating sustainability into their business strategies. The focus on renewable energy, waste reduction, and ethical supply chains is becoming increasingly important for attracting investment.

As awareness and demand for sustainable investment continue to grow, India is likely to emerge as a leader in the ESG space, contributing to a more sustainable future.