The paper is centered on the organization, issues and prospect of carbon markets and carbon credits in India. India, being the third leading carbon emitter, has to be engaged in carbon trading to meet its climate commitments under the Paris Agreement. The function of carbon credit as a tool of emissions abatement by market means is analyzed in the research. NTPC Limited and Indian Railways have executed Clean Development Mechanism (CDM) projects that effectively generated Certified Emission Reductions (CERs) and facilitated better environmental and economic benefits. Regulatory challenges, market volatility and technology issues were identified to be significant issues, with potential in scaling up renewables, suggesting a national carbon market and mobilizing foreign investment. The article explores, via research and illustrations, the need for strong policy frameworks and improved market linkages. The research suggests avenues to assist and aid the carbon market in India towards increased sustainability.