Green Investment Accelerator and Relevance of Green Microfinance: A Study of the Indian Landscape

Abstract

Change is the law of nature; therefore, it cannot be denied, but rather, one can adapt oneself in accordance with it. Similarly, when an environmental crisis ceases to be merely a problem of a specific region or country and instead becomes a global issue, initiatives undertaken by any single region or nation for its resolution prove insufficient. Consequently, it becomes imperative for all nations to adopt, to the fullest extent possible, methods for taking initiatives at their respective levels. Among the various means available for resolving environmental crises, the field of microfinance, which is prevalent across almost the entire world, stands out as a significant avenue. Therefore, the microfinance sector should chart its future course by integrating itself with the concept of Green Microfinance. India has ventured into the realm of Green Microfinance only in the recent past; consequently, very limited research has been conducted in this field within the Indian context. Accordingly, this research study is dedicated to assessing the suitability of Green Microfinance within the Indian context; concurrently, it examines the roles played by, and the initiatives undertaken by, the Reserve Bank of India (RBI), Sa-Dhan (an association of community finance institutions), and NABARD. The findings indicate that Green Microfinance demonstrates positive utility within the Indian context and that the Reserve Bank of India, Sa-Dhan, and NABARD are indeed playing pivotal roles in this regard.