The problem of climate change has worsened due to the increase in anthropogenic CO2 emissions and thus forests, which are the most cost-effective nature-based solutions for mitigating climate change, must be conserved and economically valued. The present study attempts to estimate the marginal damage caused per ton of CO2 emissions, the Social Cost of Carbon (SCC); using statistical methods of Ridge and Ridge Principal Component Regressions, for estimating the value of forest carbon stocks of India. The modelling results in the estimated value of SCC between US$13.80-US$29.50 per ton of carbon, amounting to the annual value of forest carbon of India in the range of US$99-US$212 billion. The estimated value of carbon may guide various stakeholders and policymakers; to allocate an appropriate budget for forestry conservation, and also account for the essential role of forests in mitigating climate change.