This policy brief outlines how climate action and the green economy can transform the EU–India relationship from a fragmented dialogue into a strategic green alliance. With a combined market of USD 24 trillion and 2 billion people, both partners can jointly drive clean energy innovation, resilient supply chains, and sustainable development. Priority opportunities include electric two- and three-wheelers, co-manufacturing renewable energy components, scaling circular economy practices, deploying digital public infrastructure for emissions tracking and disaster management, and expanding heat- and water-management solutions. India’s Global South credibility and Europe’s technology, finance, and regulatory strengths could together shape global standards and unlock cleantech investment. Yet challenges persist—tariff and regulatory frictions, divergent approaches on coal and CBAM, and “Make in India” vs. “Made in Europe” policies. The brief calls for moving from transactional cooperation to an institutionalized strategic partnership through a Green Chapter in an Investment Protection Agreement, joint innovation funds, skills mobility strategies, and pragmatic alignment of trade, climate, and industrial agendas to deliver high-impact results.