Reducing emissions from deforestation and forest degradation (REDD+) is considered as an important mechanism under the UNFCCC aimed at mitigating climate change. The Cancun Agreement on REDD mechanism has paved the way for designing and implementation of REDD+ activities, to assist countries experiencing large-scale deforestation and forest degradation. Contrary to the general perception, the present analysis shows that India is currently experiencing deforestation and forest degradation. According to the latest assessment of the Forest Survey of India, the
net annual loss of forests is estimated to be 99,850 ha during the period 2007–2009, even though the total area under forests has increased. The REDD+ mechanism aims to provide financial incentives for reducing deforestation and forest degradation. India, despite having robust legislations, policies and remote sensing capabilities, is not ready to benefit from the emerging REDD+ mechanism, with potential flow of large financial benefits to rural and forest-dependent communities from international financial sources.