Implications of Green GDP in India

Background: Gross Domestic Product (GDP) has long been the primary indicator of economic progress; however, it fails to account for environmental degradation and resource depletion. Green GDP, an alternative measure, adjusts traditional GDP by incorporating environmental costs and sustainability factors. In a rapidly developing economy like India, where industrial expansion, urbanization, and resource consumption are accelerating, understanding the implications of Green GDP is crucial for policymaking, sustainable development, and long-term economic stability. This study explores the potential impact of Green GDP adoption in India, highlighting challenges, benefits, and policy implications. Method: This research follows a conceptual approach, synthesizing existing literature, policy documents, and case studies to analyse Green GDP’s relevance to India. This study analyzes literature, policy documents, and case studies, comparing global Green GDP models with India’s environmental accounting practices. Results: Findings suggest that adopting Green GDP in India could provide a more holistic measure of economic progress by internalizing environmental costs. It would help policymakers identify sectors with high ecological footprints, promote sustainable industries, and drive regulatory reforms. However, challenges such as data scarcity, valuation complexities, and institutional resistance pose significant hurdles. Conclusions: Green GDP has the potential to reshape India’s economic assessment framework by aligning growth with sustainability. While its implementation is complex, a phased approach integrating environmental accounting practices and institutional capacity-building can facilitate its adoption. Policy interventions, technological advancements, and international cooperation will be crucial for transitioning toward a greener economic model. Future research should focus on developing India-specific Green GDP methodologies to enhance its practicality and acceptance in policy circles.