The crop residue burning poses a threat to the environment and human health due to the emission of toxic gasses and particulate matter. This study examines the possibility of biochar production from corp residue and its utilization as a soil fertility enhancer and alternative fuel as a sustainable solution. The estimations of the total biochar production from major crop residues produced (wheat, rice, sugarcane, and maize) in India and the evaluation of its impact on CO2 sequestration potential, nutrient sequestration, and improvement in crop yield were made with the available data. The estimations indicate that the biochars produced from crop residue could have high carbon (45–83%), nutrients (N: 0.3–3.2 g/kg%, P: 0.1–7.99 g/kg and K: 2.64–224 g/kg), cation exchange capacity (10.9–97.3cmol/kg), water holding capacity (41–561%) with high heat value (15–28 MJ/kg). On applying crop residue derived biochar in soil, the revenue can be generated through CO2 sequestration ($0.29–3.63 million per year) and enhancement in crop productivity (0.02–0.94 million $/ha/year). The study advises that the production of biochar from crop residue could be beneficial not only for the environment but also for the farmers. Technological developments for biochar production at farmer levels are needed to discontinue the crop residue burning in India.