Carbon offsetting has emerged as a strategy for businesses to address their carbon emissions. This abstract highlights the advantages and disadvantages of carbon offsetting in the business context. The benefits include immediate progress toward carbon neutrality, positive brand image enhancement, and fostering innovation. However, concerns such as greenwashing, variable project efficacy, and financial burdens pose challenges. To maximize benefits, businesses should adopt a holistic approach that combines offsetting with direct emission reduction efforts. Collaboration between industry, governments, and NGOs is pivotal to establish effective carbon offsetting frameworks. Ultimately, while offering a path to emissions mitigation, carbon offsetting requires careful implementation to ensure meaningful environmental impact and sustainable business practices. The study's goal is to weigh the benefits and drawbacks of utilizing CO2 credits in the manufacturing sector in India.