Published by: Sai Om Publications Sai Om Journal of Commerce & Management A Peer Reviewed National Journal GREEN ACCOUNTING-A WAY TO SUSTAINABLE DEVELOPMENT

In the last sixty years, GDP has come to be seen as the primary indicator of the state of national economies and social well being and a key guide to policy makers and investors. It reflects about the growth made by the nation.GDP growth does not reflect many vital aspects of national wealth and wellbeing, such as changes in the quality of health, the extent of education, or the quality and quantity of natural resources. Recognising that GDP growth is too narrow a measure of economic growth and not a measure of national wealth, experts have proposed a Green Accounting framework for India and its Union territories. Decision makers need the right indicators to ensure that policies and investments maximize wellbeing for current and future generation. Equally citizens need access to such information to hold their governments to account for robust and transparent information which is a pre requisite for public empowerment and encouragement. This means that there is a need to develop system of national accounting that fully incorporates the capital stock that determines our earnings. Better macro economical and societal indicators are needed to reflect the contribution of biodiversity and ecosystem service to human well-being. One approach that is gaining momentum across the globe is Green accounting whereby national accounts are adjusted to include the value of nature’s goods and services. This paper is an attempt to evaluate the theoretical background of the concept ‘green accounting