Green Gross Domestic Product (GDP)

Chhattisgarh has become the first Indian state to link forest ecosystem services with Green Gross Domestic Product (Green GDP).

• Forests cover 44% of the state’s land and contribute to climate mitigation and the rural economy.
• Green GDP accounts for economic losses due to resource depletion and ecosystem degradation.
• Formula: Green GDP = Net Domestic Product – (Depletion Costs + Degradation Costs).
• Introduced in the late 1980s to address environmental impacts on GDP.
• Initiatives supporting Green GDP: UN’s SEEA (1993) and World Bank’s WAVES project.
• Chhattisgarh values forest services like carbon sequestration, water conservation, and biodiversity.