Green finance has emerged as a vital instrument in promoting sustainable development and combating climate change. In India, the growing emphasis on renewable energy, low-carbon infrastructure, and ESG compliance has accelerated the need for green investment mechanisms. This study explores the opportunities and challenges of green finance in India through a primary survey of 120 investors, bankers, and entrepreneurs in Bengaluru. The findings reveal increasing awareness and willingness to invest in green financial instruments such as green bonds and ESG funds. However, challenges such as limited awareness among retail investors, lack of standardized policies, and inadequate financial incentives hinder large-scale adoption. The study also highlights that institutional investors show greater confidence in green investments compared to individual investors. The paper concludes that strengthening regulatory frameworks, improving transparency, and integrating green finance into mainstream banking and investment practices are essential for India’s transition towards a sustainable economic future. The study contributes to understanding how green finance can balance economic growth with environmental protection.