In the fast-changing Indian economic environment, the position of financial transparency has become central to determining the shape and efficacy of corporate governance. This study investigates the dynamic interaction between financial transparency and corporate governance mechanisms in the Indian corporate landscape. Financial transparency is the extent to which firms provide stakeholders with relevant, reliable, timely, and understandable financial information, and thus build trust and accountability. In the Indian context, where there have been corporate frauds and governance scandals which have intermittently tarnished investors' confidence at times, financial transparency has also become a major determinant of effective good governance practice. The paper discusses how disclosure practices in financial reporting influence board effectiveness, stakeholders' confidence, and firm performance. It examines the regulatory framework established by bodies like SEBI (Securities and Exchange Board of India), MCA (Ministry of Corporate Affairs), and the enactment of significant reforms like Clause 49, Companies Act 2013, and amendments more recently added regarding ESG and CSR reporting. Case studies of corporations such as Infosys, TATA Group, and Satyam are considered in order to illustrate the good that can be done by high transparency and the danger of its lack. Employing a mixed-methods study—mixing empirical data analysis of BSE-listed companies and expert interviews—the research throws light on how organizations with increased financial transparency generally have stronger board independence, more effective audit practice, and better investor relations. The results emphatically point towards the fact that transparency is not just a governance requirement but an instrument of long-term sustainability as well as moral governance. In addition, the research points to critical challenges of poor enforcement, compliance loopholes, and a lack of stakeholders' awareness as impediments to achieving complete financial transparency. The research suggests strategic recommendations such as improved whistleblower protections, increased digital financial disclosure utilization, and building capacity for board members and compliance officers. Finally, the paper maintains that strong financial transparency is at the core of developing a climate of trust, accountability, and ethical business behavior within India's corporate landscape. Fortifying this aspect of governance can go a long way toward promoting foreign investments, curbing corporate malpractices, and enabling sustainable economic development.