India's intention to pursue high climate ambition has increased pressure on high-level mass government expenditure on environmentally sustainable infrastructure and has cast doubt on its financial sustainability within traditional debt-financing models. It is against this background that sovereign green bonds (SGrBs) have emerged as a potential tool to ensure that climate finance is complemented by sound debt management. This paper discusses the idea that sovereign green bond issuances in India lower the cost of borrowing and provide a significant contribution to the fiscal sustainability. The study will perform a matched analysis of conventional government securities of the same maturity and issue date to isolate the existence of a greenium using issuance-level primary auction data of all Indian SGrBs issued between 2023 and 2025. […]