Context:Over the years, India has evolved as a leading powerhouse of economic growthbut belongs to the nations that are most significantly affected by anthropogenicenviron-mental changes. As part of the Paris Agreement, India has formulated a national climate agenda, but a large gapprevalentin the green financialmarket as well as other deficien-cies in the general bondmarket and the underlying infrastructure restrain the country from attaining those goals. Purpose:Earlier scholarly works, and green bond reports, in particular, have foreground the number of green bond issuances in India but do not take a critical look at the stagnat-ing development of the market and have not scrutinised the market and its actors in the context of scientific frames of reference yet. Thus, this thesis aims to identify the chal-lenges India faces in scaling the green financial market up while taking the demands and potential contributions of stakeholder groups into consideration. Methodology:This thesis is grounded in the author’s assumptions of interpretivism and subjectivity. Following these initial considerations, an inductive approach was followed, and a qualitative study was conducted, mainly based on a literature review in areas like sustainable finance,green financialmarkets and theirparticipantsas well asgreen debt securities and the associated issuers, investors, costsandverificationmethodsin India. Findings:The main challenges India faces in developing the green financial market fur-ther are the missing transparency provoked by the fragmentary green bond regulation as to disclosure and verification requirements as well as illiquidity caused by a small number of and little environmental awareness among investors. The market relies heavily on the banking sector and green investment projects are slanted towards renewable energy and energy efficiency projects. Moreover, green debt securities lack clear pricing advantages compared to conventional bonds but bear risks for greenwashing activities. Research Limitations:This thesis was not able to bridge the research gap on challenges for scaling India’s sustainable financial market up. The examination was further initiated by the author’s experiences with the topicand is based on an interpretive approach, thus, argumentations and findingsmight be value-laden. The small sample size of interviews taken and the limited information on greenwashing within financial activities might have not deliveredfull insightsinto the research topic