Embracing Natural Resource Accounting in India: Some Reflections

National accounts based on the System of National Accounts (SNA) are limited in scope and coverage and hence inadequate for obtaining information on determinants of growth process and sustainability of development. This paper highlights some of the missing elements of SNA accounts with respect to contribution of natural resources and its implications. Sustainability analyses call for the mainstreaming of a system of natural resource accounting that integrates information on environment-economy interactions. The System of Integrated Environmental and Economic Accounting (SEEA) by the UN provides the conceptual framework for understanding such interactions. It was adopted by the UNSD as the first international statistical standard for environmental-economic accounting in 2012, and the framework along with its standardised methodology serves as a ready reckoner for countries looking to mainstream natural resource accounting. This paper presents the conceptual framework and scope of the SEEA. Widespread adoption of SEEA will support critical global initiatives such the monitoring of SDG indicators, the post-2020 biodiversity agenda and international climate policy. In this context, the paper also presents the Indian narrative on the initiatives by the government towards mainstreaming of natural resource accounting, which have been sporadic, albeit noteworthy and encouraging.