SUSTAINABLE FINANCE: A COMPREHENSIVE ANALYSIS OF RISKS AND TECHNOLOGICAL INNOVATION IN INDIA

Purpose: This paper analyzes the impact of green loans and sustainability-linked loans on India's financial and environmental sustainability. It explores the adoption of sustainable finance practices within India's unique socio-economic, regulatory, and technological framework, focusing on their influence on risk management and technological innovation in the financial sector. Design/methodology/approach: A mixed-method research approach has been adopted through the use of surveys, interviews, case studies with financial institutions in India, and econometric techniques to analyze the relationship of sustainable finance practice, financial risk management, and technological advancement in the sector. Findings: Green loans and sustainability-linked loans are positively impacting both financial stability and environmental sustainability in India by being a good practice of sustainable finance. Key technological innovations, such as AI and data analytics, will drive these improvements. Originality: This research is one of the first comprehensive studies focusing on sustainable finance in India, especially in the area of risk management and technological innovation. It fills a critical gap in the literature by exploring how India's financial institutions integrate sustainability into their operations in the context of an emerging economy. Research limitations/implications : Limitations in the study include restricted access to proprietary data from financial institutions and regional variations in the adoption of sustainable finance, which may affect generalization. Social effects: This study provides very valuable insights to policymakers, financial institutions, and investors in India as they seek strategies that bring together financial growth and environmental and social sustainability. It contributes to the efforts of India toward the attainment of climate goals and the UN SDGs. KEYWORDS: Sustainable finance, financial risks, technical innovation, green bonds, fintech, policy implications