Sustainable Infrastructure Investment: Financial Drivers, Policy Dynamics and Socio-Economic Challenges

Green finance is an important tool that would help in reducing environmental degradation and promoting sustainable development as a means of reducing the burning socio-economic challenges inherent in rapidly urbanizing nations where infrastructure development must align with net zero emissions targets by 2070 to ensure long term ecological balance and economic resilience. Although many advances have been made in regulations and production of renewable energy in India, environmentally friendly financing in the infrastructure sector is not thoroughly studied regarding socio-economic challenges and the specific interaction of financial drivers within this developing economic context leaving a critical research gap for policymakers. This paper determines key determinants that can affect the uptake of green finance by Indian infrastructure companies using primary empirical data to come up with context-dependent information for stakeholders interested in aligning operations with sustainability goals and national developmental priorities. Primary data was gathered in 2025 in India using a structured questionnaire from 54 valid responses obtained from loan disbursement professionals in the banking sector including credit analysts and senior decision-makers across public and private institutions following rigorous data screening procedures and validation. Data analysis was done using SPSS software version 26.0, applying Pearson correlation analysis, reliability test with Cronbachs alpha, multiple linear regression, and ANOVA to test the relation between the dependent variable and four independent constructs ensuring methodological precision and validity following electronic administration. With regression coefficient of 0.45, organisational characteristic observed as strongest predictor. The regression model accounts 55 percent of the variation in the adoption of green finance, with technological readiness following as the second strongest predictor at 0.38 indicating innovation capacity matters alongside government support at 0.28 and financing information availability as the least predictor. ANOVA results show an F-statistic of 12.80 and a p-value of less than 0.001, confirming the overall model is statistically significant at a 95% confidence level regarding the identified determinants including financing information at 0.22 which is the least predictor of adoption rates among the four variables studied. These observations highlight the strategic importance of firm size and commitment in prevailing over socio-economic challenges using sustainable financing to meet developmental priorities and inform future policy frameworks for sustainable growth in the region and beyond.