Green bonds have brought about a phenomenal growth in sustainable finance worldwide and India is no exception. Increasing focus on Sustainable Development Goals, rising climate awareness, renewable energy targets, technological advancements, decline in the cost of renewable energy technologies, government interventions and policy support, regulatory framework by the Securities and Exchange Board of India, and the need for individual investors going for investment portfolio diversification have contributed to the green bonds growth trajectory. Nevertheless, green bonds are faced with challenges relating to high verification costs, risk of greenwashing and a standardized global framework in order to ensure regulatory clarity. The present chapter focuses on the current state of green bonds adoption in India, the various types of green bonds and their role in sustainable debt financing, the key players involved, the major challenges being faced, remedial mechanisms, and the way forward. A few case studies on companies offering green bonds have also been included to give a wholistic perspective to the topic in-hand. The results of the study are expected to deliver valuable insights to myriad stakeholders, thereby expanding the reach of sustainable debt financing.