Sustainable investing, with a focus on Environmental, Social, and Governance (ESG) factors, is gaining remarkable traction among Indian investors in 2025. ESG funds, which invest in companies with strong sustainability practices, are becoming a preferred choice for millennials and institutional investors alike, seeking to align their portfolios with ethical values while aiming for long-term growth. Regulators and asset managers are also promoting ESG disclosures and frameworks, increasing transparency and accountability in corporate India.
This trend reflects a broader shift towards responsible investing, driven by rising awareness about climate change, social justice, and governance reforms. Investors looking to diversify their portfolios now consider ESG funds as a viable option that balances profit with purpose. As India moves towards a greener economy, ESG investments are expected to play a critical role in shaping the country’s financial and environmental future.
