Does the present income accounting system represent the real value of the wealth of the economy? If not, how do we evaluate the performance economy? How can the present evaluation method accommodate different aspects of the economy, society, and the environment? If these aspects are not considered in the evaluation process, can it be justified socially or environmentally? In this paper, we discuss the limitations of conventional income accounting, recent developments in environmental accounting at the international level, the progress and challenges of environmental accounting in India, and the way forward.
