Forests in India generate $2.5 trillion annually, says study
The study highlights that forests support the livelihoods of nearly 275 million people across India, while more than 100 million individuals are directly employed in forestry-related occupation
India’s forest ecosystem services are estimated to be worth approximately $2.5 trillion annually, underscoring their critical role in the country’s economy, environment, and rural livelihoods, according to a recent study published in Elsevier.
The study highlights that forests support the livelihoods of nearly 275 million people across India, while more than 100 million individuals are directly employed in forestry-related occupations. These ecosystems provide a wide range of services, including timber, food resources, carbon storage, water regulation, and ecotourism.
Non-Timber Forest Products (NTFPs), such as medicinal plants, bamboo and honey, alone contribute an estimated Rs 1.75 lakh crore each year, benefiting around 300 million rural residents. Researchers emphasize that these products form a crucial component of income and sustenance for forest-dependent communities.
The study titled, ‘Contribution of forest ecosystem services in India using meta-regression approach’, also points to the significant role forests play in water regulation, with associated benefits estimated at Rs 20,000 crore annually. These services are particularly vital for agricultural communities that depend on stable water supplies for crop production.
Conducted by researchers from multiple institutions, including the Institute for Social and Economic Change, the ICFRE-Institute of Forest Productivity, the Indian Council of Forestry Research and Education, the Indian Research Institute for the Environment and Livelihoods, Charles Darwin University in Australia, and the State Forest Research Institute in Chennai, the study stresses the importance of valuing forest ecosystem services in economic terms.
According to the researchers, such valuation is essential for informed environmental and economic decision-making, as it highlights the financial risks associated with forest degradation and strengthens the case for conservation efforts.
India’s forests currently cover 21.76% of the country’s land area, with diverse forest types contributing differently to biodiversity, climate regulation, and economic activity. For instance, Himalayan moist temperate forests provide timber, herbs, and medicinal plants while also regulating river flows crucial for mountain communities.
In contrast, tropical thorn forests in arid regions help prevent soil erosion and desertification, while also supplying fodder for livestock. Littoral and swamp forests, including mangroves, play a vital role in fisheries, tourism, and wood production, while offering protection against coastal erosion, tsunamis, and extreme weather events.
The findings reinforce the need to integrate ecological valuation into policy frameworks to ensure sustainable management and conservation of India’s forest resources.
