Forests are essential in combating climate change by functioning as carbon sinks, sequestering atmospheric carbon dioxide and storing it in biomass and soil. India, possessing various forest ecosystems, holds substantial potential for carbon sequestration. Climate change, marked by increasing temperatures, altered precipitation patterns and extreme weather phenomena, jeopardizes forest biomass and carbon sequestration. This systematic analysis evaluates the effects of climate change on forest biomass and carbon sequestration in several forest types in India. The study evaluates different methodologies for biomass estimation, including destructive, non-destructive and remote sensing approaches. It highlights the contributions of diverse forest types such as Himalayan forests, tropical rainforests, deciduous forests, mangroves and agroforestry systems in carbon sequestration. The findings indicate that while Indian forests act as vital carbon reservoirs, deforestation, land-use changes and climate-induced stressors have generally decreased the carbon sequestration potential of these forests by reducing biomass accumulation and increasing ecosystem stress, although variability exists across forest types. Sustainable forest management, afforestation and climate-resilient strategies are essential to enhance carbon storage. Integrating remote sensing technologies, ecological modeling and policy frameworks like REDD+ can aid in better monitoring and conservation efforts. This review provides insights into future strategies to strengthen India’s forest carbon sequestration capacity and mitigate climate change impacts.