A Study on Socio-Economic Impact of Green Housing Finance on Sustainable Development in India

Green housing finance has become an important instrument for promoting sustainable development in emerging economies (IFC, 2019; UN, 2015a). In India, the housing sector contributes to economic growth but also places heavy demands on energy, water, and natural resources (Government of India, 2008). This study investigates the socioeconomic impact of green housing finance in Rajasthan, a semi-arid state facing water scarcity, climate risks, and urban–semi-urban disparities (Government of Rajasthan, 2025). Using a descriptive and analytical design, the research evaluates the availability and effectiveness of green housing finance products offered by public banks (SBI, 2023; RBI, 2022) and private banks (HDFC, 2023; IFC, 2021). Primary data were collected from 1,000 respondents across urban centers (Jaipur, Jodhpur, Udaipur) and semi-urban regions (Alwar, Bhilwara, Sikar), supported by secondary sources from RBI, NHB, IFC, and IGBC (NHB, 2023a; IGBC Reports, 2022–2024). Results show that green housing finance reduces household energy costs, improves living standards, and supports environmental outcomes (IFC, 2023). However, adoption remains uneven due to affordability barriers, limited awareness, and institutional gaps, especially in semi-urban areas (Ghosh & Purohit, 2022). The study emphasizes the need for region-specific financial innovation, targeted awareness programs, and stronger coordination between banks and policymakers (Trivedi et al., 2025). By providing state-level evidence, the research contributes to the literature on sustainable finance and offers policy insights aligned with India’s climate commitments and Sustainable Development Goals (UN, 2015b; Springer Nature, 2023).