Forest Resource accounting is a debated issue. With the fast-growing economy in India, the growing pressure and increasing awareness for environmental protection requires deep understanding of the interactions between forest and other sectors concerning economic development, forest resources consumption and forest environmental degradation. Classical Gross Domestic Product (GDP) measures under the System of National Accounts (SNA) do not take into account material externalities, instead they emphasize on GDP as a measure of economic growth. Accounting for forest wealth has a number of policy useful benefits that is why it is necessary to maintain such accounts which incorporate all those benefits. True contribution of forestry sector benefits to the national economy are at present grossly underestimated with the result that the actual benefits are several times higher than those reported and incorporated in the national income accounts. Recognizing the need for a realistic valuation of forest benefits and costs, an appropriate accounting framework for integrating Forest Resource Accounts (FRA) into the National Income Accounts (NIA), is needed. It will provide better understanding of the full range of goods and services supplied by the forests which is essential for the optimal utilization of forests, and may provide an economic rationale for sustainable forestry. Forest stakeholders the world over are considering the transition to sustainable forest management (SFM). This paper attempts to discuss the initiatives undertaken worldwide and by India in context of FRA including its evolution, development, data gaps and issues concerned and recommends the way forward.