Green Growth in the Desert: Exploring Sustainable Investment Pathways in Rajasthan

Abstract

Owing to regulatory reforms, enhanced corporate governance standards, and global sustainability convergence, India has witnessed a complete transformation of the ESG (Environmental, Social, and Governance) paradigm. ESG Factors Under Investment Decisions, AUM (%) Growing AUM Under ESG Focused Approach. This trend aligns with India’s commitment to sustainable and resilient economic growth via strategic sectoral investments and regulatory efforts. As a result, ESG investments are anticipated to play an important role in rebuilding the Indian financial ecosystem in the future. In 2021, SEBI had issued the BRSR framework which is a path-breaking regulatory reform in this space. Under this framework the top 1,000 publicly listed companies must disclose sustainability performance while BRSR Core ensures that the first 150 companies undergo assurance for their annual report for FY24. With an eye on stronger transparency and accountability in sustainable business practices, FY25 will see the coverage of top 400 firms listed on exchanges as well as those companies striving for a better market share, while up-time coverage is expected for the top 1,000 listed firms by FY27.
This rising trend in ESG investing as a holistic long-term strategy speaks to investors’ faith in sustainable finance. We are at a critical crossroad where sustainability felt more like a matter of ethics rather than a matter of strategy. There are opportunities with a diverse market, a booming innovation ecosystem and policy boost, but also challenges like resource constraints, regulatory frameworks and infrastructure gaps even now. Sustainable investing refers to the evaluation of businesses beyond just financial performance; it also encompasses how those businesses impact you, those around you and the planet. Therefore, this study examines the evolving ESG landscape in India to identify challenges, opportunities, and the role of ESG investments in strengthening economic resilience and sustainable development on the ground.