Financing a Sustainable Future: A Cost-Benefit Analysis of Green Energy Transition in India’s Energy Landscape

India is currently facing a pivotal moment in its energy sector as it struggles to meet rising energy demands fuelled by rapid economic growth and urbanization. Reliance on traditional energy sources, particularly coal-based thermal power, has proven harmful to the environment and unsustainable in the long run. Thermal power generation contributes significantly to air pollution and greenhouse gas emissions, raising growing environmental concerns. Although nuclear power offers an alternative, it comes with its own set of challenges, such as high costs and safety risks, particularly in a densely populated nation like India. In contrast, the transition to green energy—comprising solar, wind, and other renewable sources—offers a sustainable pathway that aligns with India’s environmental and economic goals. This paper conducts a thorough cost-benefit analysis of financing sustainable energy projects in India, taking into account the country’s unique socio-economic context. The analysis highlights the lasting advantages of green energy, such as lowering environmental damage, improving energy security, and creating opportunities for economic growth through the development of new industries and jobs. With the 2024 Indian budget allocating significant funds to green energy initiatives, this paper emphasizes that focusing on renewable energy investments is not only a wise financial move but also crucial for securing India’s sustainable energy future.