The social discount rate is derived from an inter‐temporal social utility model for land‐use projects in India. The social discount rate is a function of two parameters: the elasticity of social marginal utility of consumption and the growth rate of per capita real consumption. The final results for the social discount rate and the elasticity of social marginal utility of consumption are 2 per cent and ‐1.4 respectively. These values are plausible and comparable with other estimates found in the liter