ABSTRACT
For India to transition, the quantum of funds required is massive. Irrespective of which report one refers to, the one message that comes out clearly is that India will need trillions of dollars to achieve the milestones set out. As per Landscape of Green Finance report, finance flows were USD 44 billion per annum, amounting to approx. 25% of total flows required. That leaves a gap of over USD 120 billion per year. Where will these funds come from is the question that is being grappled with – be it from a public, private sector perspective or a domestic, international one. India is predominantly a banking driven country, and one thing is clear that while the banking sector plays and will continue to play a pivotal role, it alone is not enough. So, what can be done? The aim is to understand different mechanisms that can help in recycling capital with the aim of freeing up the space in the banking sector. In this paper we will look at alternative options including bond markets, securitisation, and innovative mechanisms which could become useful tools in the India’s financial arsenal.
