Green Accounting Practices in India - An Overview

Abstract

Environmental Accounting is an important tool for understanding the role played by business enterprises in the economy in relation to environmental safety and welfare. It provides data highlighting both the contribution of business enterprises to economic well-being and the costs imposed in the form of pollution or resource degradation. Therefore, recent years have witnessed rising concern for environmental degradation which is taking place due to increasing industrial activities. It may be noted here that environmental degradation and pollution spoil human health, reduce economic productivity and lead to loss of amenities. Developing countries like India face the twin problems of protecting the Environment and promoting economic development. A trade-off between Environmental protection and development is required. Green accounting has gained importance in India in recent years, as the country faces numerous environmental challenges, including air pollution, water scarcity, and climate change. In response to these challenges, the Indian government has implemented various policies and initiatives to promote sustainable development and encourage businesses to adopt green accounting practices.