A guide to national accounting called Integrated Environmental and Economic Accounting, released by the UN in 1993, concentrated on the monetary assessment of natural resources and allowed the cost of resource depletion and environmental damage to be deducted from GDP.(1) The guidebook specifically encouraged the creation of a "environmentally adjusted domestic product" (also known as a "green GDP") since it is a measure of a nation's readiness for sustainable economic development as well as the rise or fall in carbon dioxide emissions or waste per capita. China introduced this idea by publishing its first green GDP data for the year 2004 in 2006(2). Green GDP accounting's primary goals are to give a more accurate measure of welfare and to assess the sustainability of economy. Green GDP accounting is now a crucial foundation for creating and putting into practise global sustainable development policies. Natural resource depletion less pollution damage is equivalent to green GDP. (3) India ranks 169th out of 180 nations among the top six major economies, showing that its green growth is below average. The objective of this study is to examine the effects of air pollution on India's GDP development. The cost of air pollution and environmental damage is seen as an externality, and externalities are not included in GDP. To comprehend this effect, published reports on air pollution have been used. However, the economic cost of premature deaths and morbidity brought on by air pollution in 2016 was Rs. 2,60,000 crore, or 1.4% of GDP in India in 2019. Additionally, it stated that 1.7 million deaths in the nation—or 18% of all deaths—were caused by air pollution.(4)