Q.A country's Gross Domestic Product (GDP) for a year is ₹60,00,000 crore. During the year, the estimated monetary value of natural resource depletion (forests and minerals drawn down) is ₹4,00,000 crore, and the estimated cost of environmental degradation (air and water pollution damage) is ₹2,50,000 crore. Calculate

Green GDP corrects conventional GDP by deducting the monetary value of resource depletion and environmental damage that ordinary GDP ignores.

$\text{Green GDP} = 60{,}00{,}000 - 4{,}00{,}000 - 2{,}50{,}000 = ₹53{,}50{,}000 \text{ crore}$

$\text{Environmental cost} \% = \dfrac{4{,}00{,}000+2{,}50{,}000}{60{,}00{,}000}\times 100 = \dfrac{6{,}50{,}000}{60{,}00{,}000}\times 100 \approx 10.83\%$

Step 1 — Apply the Green GDP formula.

$\text{Green GDP} = \text{GDP} - \text{Value of Resource Depletion} - \text{Cost of Environmental Degradation}$

$= 60{,}00{,}000 - 4{,}00{,}000 - 2{,}50{,}000 = ₹53{,}50{,}000 \text{ crore}$

Step 2 — Compute environmental costs as a percentage of GDP.

Total environmental cost $= 4{,}00{,}000 + 2{,}50{,}000 = ₹6{,}50{,}000$ crore.

$\text{Percentage} = \dfrac{6{,}50{,}000}{60{,}00{,}000} \times 100 = 10.833\ldots\% \approx 10.83\%$

Independent check. Green GDP as a fraction of GDP should equal $100\% - 10.83\% = 89.17\%$ of GDP. Checking: $53{,}50{,}000 / 60{,}00{,}000 \times 100 = 89.17\%$ — consistent with the deduction computed above, confirming the arithmetic.

Alternative check: compute Green GDP directly as GDP × (1 − environmental cost fraction). Environmental cost fraction = 6,50,000/60,00,000 = 0.1083. Green GDP = 60,00,000 × (1 − 0.1083) = 60,00,000 × 0.8917 = ₹53,50,200 crore (small rounding difference from the direct subtraction method, consistent with the same answer).

A common error is deducting only one of the two environmental costs (resource depletion OR degradation cost) instead of both. Another is computing the percentage against Green GDP instead of against the original (conventional) GDP — the question specifically asks for the environmental cost as a share of GDP, the starting figure, not the adjusted figure.