Economic growth has been conventionally looked upon as the measure for the development of society, while ignoring the other aspects viz., human development, natural resources, environment and ecology. In the conventional accounting of economic development, the value of services and goods provided by natural resources like air, water, land and biota are ignored; neither any attempts are made to monitor and account for the changes in natural resources and environment. For the economic development to be sustainable, the environmental costs have to be limited and to be growing at slower pace than the economic gains. In this chapter, an attempt is made to outline the importance of using Natural Resource Accounting (NRA) for sustainable development through an attempt to estimate the environmental costs and benefits, and also to compare with economic growth in the case of India. This chapter highlights the potential of using NRA to make decisions for sustainable development through policies for conservation, management and development of natural resources.
