This paper is an exploratory study to understand the key features of a carbon market and the context in which a carbon market can possibly be introduced in India. The paper examines the potential for a Pilot Carbon Market in India based on a review of existing global carbon markets and an understanding of the attempts by the Indian authorities to usher in market-based instruments for emission control. In this context, the paper recommends a specific pilot and incorporates the views of a few stakeholders to get a sense of its feasibility.