Abstract:
The purpose of this paper is to understand the green growth by MSME sectors &
examine the role of banking sector and financial institutions in its contribution towards
green financing. The review of literature indicates that, increasing energy consumption
and natural resources as against the regenerating capacity of the planet would hamper
the economic growth and hence green initiatives would be a tool for sustainable
inclusive growth. The investigation used case study research method, to understand the
green growth of MSME sectors and also examines the role of banks in green financing.
The study shows that the government initiatives has provided significant opportunity
for MSME sector to deliver the right product, right quality and right solution at
competitive price and contribute better to the green economic growth of the country.
Also, the guidelines provided by RBI has enabled banks and other financial institution
to take proactive steps towards this growth. The policy guidelines by government and
RBI would help the firms implement green practices contributing to the economic
development. The paper highlights the importance of green finance as a tool towards
financial inclusivity. The paper contributes to the academic knowledge in highlighting
opportunities available to different sectors.
