Abstract

The increasing awareness of environmental, social, and governance (ESG) issues has reshaped investment
strategies globally, with India emerging as a significant player in the rise of sustainable investing. This
research explores the growth of ESG-focused funds in India, analyzing their evolution, drivers, and impact on
the financial and sustainability landscapes. It highlights the role of regulatory frameworks, investor demand,
and corporate responsibility in fostering this trend. Furthermore, the study examines the challenges faced by
ESG investments, such as green washing, lack of standardized metrics, and limited investor awareness. The
main goals of this study are to analyse growth trends, identify key drivers, assess performance, and
comprehend investor behaviour. The study offers insights into the performance of ESG funds, their
compatibility with international sustainability objectives, and their capacity to revolutionize India’s
investment ecosystem through quantitative analysis. In order to identify current trends in sustainable
investing in India, this study will concentrate on data from the previous five to ten years. It is based on
secondary data analysed from asset management firms, financial institutions, and regulatory agencies (SEBI).
Examine market reports, scholarly articles, and ESG fund performance information. With important
ramifications for firms, investors, and politicians alike, this study emphasizes the vital role that sustainable
investing plays in promoting economic growth while tackling environmental and social issues.