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India’s forest value hits $2.5 trillion annually: Study

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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 report 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 emphasise that these products form a crucial component of income and sustenance for forest-dependent communities.The study also points to the significant role that 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 per cent of the country’s land area, with diverse forest types contributing differently to biodiversity, climate regulation and economic activity. For instance, the Himalayan moist temperate forests provide timber, herbs and medicinal plants, while regulating river flows that are crucial for mountain communities.In contrast, tropical thorn forests in arid regions help prevent soil erosion and desertification, while supplying fodder for livestock. Littoral and swamp forests, including mangroves, play a vital role in fisheries, tourism and wood production, and offer 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.

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