India aims to reduce its GDP emissions intensity by 45% by 2030 and reach net zero by 2070. The Micro, Small, and Medium Enterprises (MSME) sector, which contributes to nearly 30% of the country's GDP and generates around 110 million metric tonnes of CO2 equivalent annually, is expected to increase by almost 50% by 2030. However, integrating ESG practices into MSMEs' value propositions presents challenges due to the lack of access to knowledge, technology, resources, and capital, the informal nature of the sector, and a lack of awareness of formal financing instruments and resources. The Indian government has implemented various policies, strategies, and programmes to promote resource efficiency. However, incentives like tax breaks and deductions can accelerate the adoption of eco-friendly practices in the MSME sector. Collaboration with international organisations, multilateral development banks, and foreign governments is critical for funding, technology, and knowledge transfer.