Environmental Accounting on Forest 2025: Key Insights and Highlights

The Ministry of Statistics and Programme Implementation (MoSPI) has recently released the 8th edition of its environmental accounts, titled “Environmental Accounting on Forest – 2025”. This comprehensive report provides a detailed analysis of India’s forest resources, including forest cover, recorded forest area, growing stock, and forest-related economic services. The study follows the UN System of Environmental Economic Accounts (SEEA) Framework, which India adopted in 2018 to align with international standards.

Forest Cover in India: Significant Growth (2010–11 to 2021–22)

According to the latest report, India’s forest cover has grown by 17,444.61 sq. km (22.5%), reaching 7.15 lakh sq. km, which accounts for 21.76% of the country’s geographical area. This growth is a positive indicator of India’s ongoing afforestation and conservation initiatives.

Major Contributors to Forest Cover Increase:

• Kerala: +4,137 sq. km

• Karnataka: +3,122 sq. km

• Tamil Nadu: +2,606 sq. km

This growth highlights the effectiveness of state-level forest management programs and community-based conservation efforts.

Recorded Forest Area (RFA): Adjustments and Gains

The Recorded Forest Area (RFA), which represents forest land officially classified under government records, registered a net gain of 3,356 sq. km. The increase in RFA is largely attributed to boundary reclassification and administrative adjustments, rather than afforestation alone.

States with the Highest Rise in RFA Share:

• Uttarakhand: +6.3%

• Odisha: +1.97%

• Jharkhand: +1.9%

These adjustments are crucial for accurate forest management, policy planning, and biodiversity conservation.

Growing Stock: Increase in Usable Wood

The growing stock, defined as the volume of usable wood in living trees, increased by 305.53 million cubic metres (7.32%) during 2013–2023. This represents a significant improvement in the country’s timber resources and sustainable forest management.

Top Contributors to Growing Stock:

• Madhya Pradesh: 136 million cubic metres

• Chhattisgarh: 51 million cubic metres

• Telangana: 28 million cubic metres

Among Union Territories, Andaman & Nicobar Islands recorded a remarkable increase of 77 million cubic metres.

Forest Service Accounts: Economic and Environmental Value

The report also evaluates forest ecosystem services, including provisioning and regulating services, in terms of their contribution to India’s GDP.

Provisioning Services (Timber and Non-Timber Products)

• Contribution to GDP: ~0.16% in 2021–22

• Top States: Maharashtra, Gujarat, Kerala

Provisioning services include the extraction of timber, firewood, fruits, and medicinal plants that support livelihoods and rural economies.

Regulating Services (Carbon Retention)

• Contribution to GDP: ~2.63% in 2021–22

• Top States: Arunachal Pradesh, Uttarakhand, Assam

Regulating services are critical in combating climate change by sequestering carbon and maintaining ecological balance.

SEEA Framework: Global Standards for Environmental Accounting

Since 2018, MoSPI has implemented the UN System of Environmental Economic Accounts (SEEA) Framework for compiling environmental-economic accounts. Developed jointly by the United Nations, European Commission, and Food and Agriculture Organization in 2012, the SEEA Framework provides a globally agreed standard for integrating environmental data with national economic accounts.

This framework helps in:

• Understanding the economic value of forests

• Supporting sustainable forest management policies

• Facilitating international reporting and climate commitments

Key Takeaways from Environmental Accounting on Forest 2025

1. Forest cover is steadily increasing, reflecting successful afforestation and forest conservation policies.

2. Recorded Forest Area growth is influenced by administrative adjustments, ensuring better accuracy in forest mapping.

3. Growing stock has improved, strengthening India’s timber and wood resources.

4. Economic valuation of forest services underscores the importance of forests in the national economy.

5. Adopting the SEEA framework ensures India aligns with international environmental accounting standards.

Conclusion

The Environmental Accounting on Forest – 2025 report provides a comprehensive picture of India’s forest resources, highlighting not just the area and volume growth, but also the economic and ecological significance of forests. With sustained policy efforts and community participation, India is on track to strengthen its forest cover, biodiversity, and ecosystem services, contributing to sustainable development goals and climate resilience.

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