Towards an Economic Approach to Sustainable Forest Development

The present paper looks at the various dimensions of contributions by forests in the context of the Indian economy. Based on a detailed review of literature on importance and valuation of forests, some policy implications on the issue of compensation to states undertaking afforestation programmes have been analysed. Certain other unanswered issues have been flagged for wider consultation including the modus operandi for compensation to stakeholders to encourage expansion of forest cover in the country. [Working Paper No. 2/2003-PC].