Examining Interactions among Challenges of Green Financing in India

This study examines the challenges of green financing in India using Interpretive Structural Modeling (ISM) to identify hierarchical relationships among key factors. The research identifies regulatory deficiencies as the foundational barrier, cascading into secondary challenges such as data gaps, low investor awareness, high costs, and limited access to financial products. These issues, compounded by greenwashing, hinder transparency and the accurate measurement of environmental returns. The structural modeling approach provides a novel contribution by revealing how these interconnected challenges stem from weak regulatory frameworks—an insight not previously mapped in Indian green finance literature. The study underscores the importance of strong legal systems, standardized metrics, technological advancement, and policy harmonization to build investor trust and improve accessibility. For scalable and effective solutions, future research should explore the integration of emerging technologies and conduct cross-regional comparative analysis.