Government may issue green bonds for up to rupees 25000 crore in FY 25

Syllabus: GS-III, Subject: Economy, Topic: Financial markets, Issue: Green Bonds.

Context: India plans to increase the sale of green bonds to finance sustainable infrastructure projects this fiscal year.


  • Demand for sustainable bonds is high in the market, leading to increased borrowing through green bond instruments.
  • Including Indian government bonds in international indices has attracted foreign portfolio investors, boosting interest in Indian government securities.

Prelims Connect (Terminology in news):

Green Bonds:

●       Green bonds fund eco-friendly projects like renewable energy.

●       Introduced by development banks in 2007, expanded to include corporates in 2013.

●       The Securities and Exchange Board of India regulates issuance for transparency.

●       Benefits include enhanced issuer reputation and cost-effective capital.

●       Crucial for financing sunrise sectors like renewable energy, promoting sustainable growth.

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