Economic growth and ecological sustainability in India

Abstract

This article looks at issues concerning environmental sustainability and economic growth in India using both micro- and macro-level evidence. The article highlights two environmental challenges of India's rapid growth: urbanization and forest cover change. With respect to urbanization, the article suggests that there is a role for economic instruments in reducing air pollution related to increasing urbanization. With respect to forest cover, it notes that whereas overall forest cover has marginally increased in India, in the bulk of forests, which are moderately dense, there is a decline. The article then asks if it is reasonable to expect forest dependence to decrease as India grows and rural wealth increases. From a broader perspective, it argues that there exist crucial environmental thresholds to India's growth strategy. The article ends with a discussion about governance issues surrounding Indian environment policy to make growth more environmentally sustainable.