Green Finance and Export Competitiveness: Evidence from India’s Renewable Energy Sector

Abstract

In the context of the developing low-carbon global trade climate, this paper explores how green finance affects India's export competitiveness in renewable energy. The study assesses how well green financial mechanisms, policy frameworks, and export performance align during FY 2023–2024 using a Descriptive-Analytical methodology supported by PESTLE analysis and Financial-Flow Mapping. Although India exported USD 4.08 billion worth of renewable products, this amounts for only 0.68% of overall merchandise exports, and barely 16% of national green finance flows are allocated toward export-oriented projects. Green bonds and concessional lending reduce capital costs, improve market access, and promote ESG compliance, as demonstrated by case studies from ReNew Power and Tata Power Solar. This is particularly true for solar photovoltaic goods, which make for the majority of India's renewable exports. The research emphasizes major gaps, including poor coordination between trade and banking institutions, restricted export-linked finance, and growing global carbon-compliance requirements. It finds that extending export-focused green finance, enhancing EXIM Bank’s Green Window, and promoting technology-driven manufacturing are vital to improve India’s position in the global renewable energy value chain.