Environmental accounts provide data which highlight both the contribution of natural resources to economic well-being and the costs imposed by pollution or resources degradation. “Environmental accounting” sometimes referred as green accounting, resources accounting and integrated economic and environmental accounting –Which refers to modifications of the system of national accounts to incorporate the use or depletion of natural resources .During this research paper, we will try to review whether environmental accounting is really able to keep an accurate account of the environmental pollution or it just an accounting concept that fulfills a legal obligation in this regard. along with the development of textile, pollution in also achieving its peak and may be much more.in Rajasthan, textile is included in top five items of exportation. along with exportation textile industry has its own significance. Textile production is estimated to be responsible for about 20% of global clean water pollution from dyeing and finishing products. Solutions to one problem must be solution for all we can’t ignore the environment on way to do development and solution lies in environment accounting which identifies resources use measure and communication cost of a company’s or cost or national economic impact on environment.in reality, if we talk, environmental accounting is in the developing stage, which does not prove to be correct in the measure.

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Keywords: Environment Accounting, Economic Development, Environmental Pollution, Textile Industry.