Abstract

The Economy of India is the seventh largest in the world by nominal GDP and the third largest by purchasing power parity with approximately 7% average growth rate for the last two decades. Although the years 2012-13 and 2013-14 have been disappointing. India needs the path of high economic growth quickly, which is essential because it will generate huge revenue for the government which can be utilized for social welfare and infrastructure program. But rapid growth is not enough, it must be of the environmental friendly nature. Many countries across the world have not taken into account the consequences of some environmental issues such as air and water pollution, climate change, energy use and natural resource depletion. In a recent global assessment approximately 60% of the world’s ecosystem services were found to be degraded or used unsustainably. This is the same case with India. Though its economic performance has brought immense benefits to its citizens as employment opportunities have increased and millions have been allowed to emerge from poverty; India’s remarkable growth record, however has been clouded by a degrading environment and growing scarcity of natural resources. In a recent survey of 178 countries whose environments were surveyed India ranked 155th overall and almost last in air pollution exposure. The survey also concluded that India’s environmental quality is for below all BRIC countries. Also according to another recent WHO survey across the G-20 economies, 13 out of the 20 most polluted cities are in India. As the population grows and urbanizes and consumption patterns change, pressure on the country’s natural resources air, water, land and forests will steadily increase. In fact, in the coming years, pressure on India’s environment driven by both poverty and prosperity, is projected to become highest in the world. In such scenario, there is a need of such low cost policy options that could significantly curtail environmental damage without compromising growth.

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