Review of Opportunities and Challenges of Green Accounting in India

Abstract

This thorough review of the literature explores the possibilities and obstacles of green accounting methods in India in the context of rapid industrialisation and environmental concerns. By examining 25 studies published between 1996 and 2025, this study shows that traditional Gross Domestic Product (GDP) assessments often overstate economic prosperity by disregarding the depletion of natural capital. The study identifies key regulatory advancements, such as the SEBI's Business Responsibility and Sustainability Reporting (BRSR) framework, the MoSPI's System of Environmental-Economic Accounting (SEEA), and the Companies Act 2013. Despite those accomplishments, significant obstacles remain, including expensive implementation expenses for Small and Medium Enterprises (SMEs), subjectivity in environmental assessment, and a lack of defined reporting guidelines. Emerging trends, including the integration of Artificial Intelligence (AI) and blockchain for ESG tracking, offer promising solutions. The paper concludes with recommendations for national standards, capacity building for SMEs, and the institutionalisation of green GDP pilots to support India’s net-zero 2070 goals.