Green finance has emerged as one of the most important bridges between economic growth and environmental responsibility. As countries confront climate change, pollution, ecological degradation and resource scarcity, the financial system can no longer remain neutral because it influences which sectors expand, which technologies become viable and which development pathways dominate. Green finance refers to the flow of funds toward activities that generate environmental benefits, reduce ecological harm, improve resource efficiency and support long-term sustainability. It includes green bonds, green loans, climate-oriented insurance, sustainability-linked investment practices, environmental risk assessment and public policy incentives that align finance with low-carbon growth. This paper revisits the idea of green finance with special reference to India and presents a review-based discussion on its meaning, historical evolution, major instruments, institutional relevance and future scope. The paper argues that green finance is not merely an ethical alternative to conventional finance; it is now a strategic necessity for resilient development. It also explains that banks, capital markets, regulators and public institutions must work together to improve disclosure, monitoring, classification standards and access to affordable capital. In the Indian context, the growth of renewable energy, green buildings, climate-resilient agriculture and sustainable infrastructure makes green finance especially relevant. However, progress remains constrained by inadequate awareness, weak project pipelines, measurement challenges, regulatory fragmentation and the risk of greenwashing. The study concludes that India has substantial potential to deepen green finance if it combines sound policy design, institutional capacity, investor confidence and inclusive implementation at the grassroots level.

Keywords: green finance, sustainable development, green bonds, green banking, renewable energy, environmental risk, India, ESG, Sustainability.