A sustainable forestry scenario aimed at meeting the projected biomass demands, halting deforestation and regenerating degraded forests was developed and analyzed for additionality of mitigation and cost-effectiveness for India. Similarly, mitigation potential of a commercial forestry scenario aimed at meeting the biomass demands from forestry activities on private land was assessed. India has a significant scale baseline scenario afforestation and effective forest conservation activities. India is afforesting at an average gross rate of 1.55 × 106 ha yr-1 over the past 10 years, while the gross deforestation rate was 0.272 × 106 ha yr-1 during the same period. The sustainable forestry scenario could lead to an additional carbon (C) stock of 237 × 106 Mg C during 2000 to 2012, while the commercial forestry scenario apart from meeting all the incremental biomass demands (estimated for 2000 to 2015) could potentially lead to an additional carbon stock of 78 × 106 Mg C during 2000 to 2012. Short- and Long-rotation forestry activities are commercially viable. With appropriate policies and financial incentives all the industrial wood, sawnwood and commercial fuelwood requirement could be met through commercial forestry, so that government funds could be dedicated for conserving state owned forests and meeting subsistence biomass demands. The commercial forestry activities could receive financial support under greenhouse gas (GHG) abatement programmes. The government, however, needs to develop institutions and guidelines to process, evaluate, approve and monitor forestry sector mitigation projects.