The Role of Green Finance in Supporting Climate-Resilient Practices: Evidence from India’s Manufacturing Sector
DOI:
https://doi.org/10.31305/trjtm2025.v05.n04.001Keywords:
Green Finance, Climate Resilience, Digital Financial Services, Access‑Usage‑Quality Model, SMEs & Tribal Manufacturing, Inclusive Financial InclusionAbstract
This study investigates the role of green finance in promoting climate-resilient practices within India's manufacturing sector. The research explores how these tools can empower marginalised communities and tribal populations to participate in sustainable development. India’s industrial sector needs to be aligned with sustainable development in the context of climate change. Small and medium enterprises (SMEs) and tribal people are still outside the formal green finance system.This study also emphasises the adoption, barriers and opportunities for digital financial services. The study examines policy gaps, access challenges, and digital inclusion strategies through qualitative approaches. This study analyses the acceptance, barriers and potential of Digital Financial Services or DFS by following the Access-Usage-Quality or AUQ model. This study highlights the potential of green finance to bridge socio-economic disparities. The study identifies multifaceted challenges such as digital illiteracy, infrastructure deficits, gender discrimination and cultural resistance. This is based on interviews with bankers, members of self-help groups and industry experts. It also enhances environmental sustainability and strengthens climate resilience. The study also found that there is huge potential for inclusive financial services through community-based digital learning and local language-based FinTech operators. Lastly, this study provides some insights for policymakers, financial institutions, and development stakeholders in India. Green finance will enable indigenous peoples and SMEs to adopt climate-resilient approaches by following these steps. Eventually, it will help to ensure sustainable industrial development and social equity.
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