Greening the Nation: India’s Path Towards Sustainable Future

This study aims to examine the non-linear impacts of green finance and renewable energy consumption on carbon emissions in India. To our knowledge, no previous research has investigated this relationship in the Indian context. The study employs the Markov regime-switching model from 2000Q1 to 2022Q4. The results reveal that green finance lowers emissions in Regime 1 but raises them in Regime 2. In contrast, renewable energy consumption does not affect emissions in Regime 1 but helps reduce emissions in Regime 2. The findings underscore the importance of continued support for green finance initiatives and the expansion of renewable energy infrastructure.