The chapter focuses on understanding the diverse framework of Climate Stress Testing (CST) in the context of the Indian ecosystem, with insights on its linkage to the financial institutional framework. The chapter aims to enable an understanding of climate-related risks, faced by a financial institution. An in-depth exploration of CST in the Indian context is quite relevant, as there is not much literature that exists in this context. The current research is limited only to foreign countries, creating the need to study the conceptual landscape of India. To support the aim of the chapter, a qualitative review methodology has been adopted to draw inferences from the socio-economic analysis of the continent and build the theoretical framework of the study for a better understanding of CST. Theoretical investigation provides insights into India’s possible hazards and vulnerabilities as a result of climatic stresses, enhancing it with the help of the Climate Risk Vulnerability Framework (CRVF). It suggests theoretical approaches and adaptation techniques that can improve India’s ability to endure the effects of climate change. Also, it suggests techniques specifically suited to India’s climate-related difficulties. This study attempts to direct proactive decision-making and policy formation for climate resilience in the Indian context by promoting knowledge of theoretical frameworks.