This article examines the emerging role of carbon credits in India as a tool for linking climate change mitigation with sustainable agricultural development. Rapid industrialization and rising greenhouse gas emissions have intensified global warming, creating serious challenges for agriculture and rural livelihoods. Carbon credit mechanisms, introduced under international agreements such as the Kyoto Protocol and strengthened through the Paris Agreement, allow emission reductions to be traded in global markets. The article highlights how Indian farmers can generate carbon credits by adopting climate-smart practices such as agroforestry, conservation agriculture, zero tillage, direct seeded rice, cover cropping, and biochar application. These practices enhance soil carbon sequestration, improve soil health, and increase farm resilience while providing farmers with an additional source of income through participation in emerging carbon markets.