Environmental Sustainability and Economic Performance: Evaluating the Financial Impact on the Indian Economy

Abstract

The study explores the intricate relationship between environmental sustainability and economic performance in the context of the Indian economy. With India striving to balance rapid economic growth and sustainable development, this research evaluates how environmental initiatives, regulations, and green investments influence macroeconomic indicators such as GDP, industrial output, and employment. The study investigates the financial implications of transitioning to a low-carbon economy, including the effects on public expenditure, private sector innovation, and foreign direct investment. In this article, the author has analyzed the economic impact of sustainability efforts on economic performance of India. It discusses the connection between the green policies, industry change, and macroeconomic indicators along with exposing challenges and future trends. Being the 5th ranked economy in the world based on the nominal GDP, India has two pressing compulsions; to build upon its path taken as the growing economy and to fulfill its dues as shown by its promises of environmental viability. The findings suggest that while short-term economic adjustments are inevitable, environmental sustainability can drive long-term economic resilience, competitiveness, and inclusive growth. The study also provides policy recommendations for integrating environmental goals with economic planning in India.