This study highlights that India’s emissions reporting systems are characterised by sectoral blind spots, lacking comprehensive data at disaggregated level, which may undermine the effectiveness of climate change-related policies essential for achieving nationally determined contributions (NDCs) and net-zero goals. As ‘non-specified industries’ contribute more than 40% of emissions from the manufacturing and construction sector, their ambiguous classification may significantly hamper targeted decarbonisation efforts within frameworks like Perform, Achieve and Trade (PAT) and Carbon Credit Trading Scheme (CCTS). Empirical analysis reveals potential discrepancies in energy consumption and emissions data, which may distort estimates and expose Indian exporters to cross-border carbon price interventions under mechanisms like Carbon Border Adjustment Mechanism (CBAM). Creation of a central designated agency for reporting standardised data on emissions and energy consumption is essential to align India’s industrial growth trajectory with environmental sustainability objectives on one hand and surviving the challenges of CBAM-like mechanisms on the other.