Budget 2026: Govt May Provide Tax Breaks For Investing In Green Bonds; Will It Generate Demand

Last Update Date: 06-10-2026

Published by Outlook Money

Abhishek Kumar's role: Quoted

Abhishek Kumar said tax breaks could revive investor interest, citing strong demand for an earlier tax-free green issue, but cautioned that the outcome would depend on product design and the small yield difference.

The article reports that the government may offer tax breaks to revive weak demand for sovereign green bonds in Budget 2026. It explains the narrow yield discount on green bonds in India, the shortfall in planned issuance, and calls for better disclosure, regular issuance and governance of green projects.

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Budget 2026: Govt May Provide Tax Breaks For Investing In Green Bonds; Will It Generate Demand

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