Impact investing has emerged as a significant paradigm in global financial markets, blending financial returns with measurable social and environmental outcomes. In the Indian context, where socio-economic disparities and sustainability challenges persist, impact investing presents a viable mechanism for inclusive growth. Despite its growing prominence, the Indian impact investing ecosystem remains underexplored in terms of its performance dynamics and contribution to financial markets. This study examines the growth, trends, and effectiveness of impact investing in India, with a specific focus on its influence on financial performance and sustainable development outcomes. The research aims to analyze the relationship between impact investment flows and market performance indicators, and to evaluate the effectiveness of impact-driven financial strategies. The study adopts a quantitative research design using secondary data collected from industry reports, investment databases, and institutional publications over the period 2015–2024. Statistical tools such as correlation and regression analysis are employed. The findings suggest that impact investing in India demonstrates a positive association with both financial returns and social outcomes, though variability exists across sectors. The study contributes to the growing literature by providing empirical insights into the Indian market and offers practical implications for investors, policymakers, and financial institutions.