Digital transformation is reshaping rural economies in India by promoting efficiency, transparency, and sustainability. Emerging technologies such as digital finance, Internet of Things (IoT), artificial intelligence (AI), and mobile connectivity are enabling rural communities to access clean energy solutions, sustainable agriculture practices, and inclusive financial services. However, adoption in rural areas remains limited due to infrastructural, digital literacy, and trust-related challenges. This study investigates how digital transformation can support climate change mitigation in rural India by enhancing resource efficiency, enabling green entrepreneurship, and promoting behavioral change. Using a mixed-method approach combining secondary data from NITI Aayog, RBI, NPCI, and the World Bank with primary data from a rural survey of 150 respondents the study identifies barriers such as low connectivity, limited awareness, and socio-cultural resistance. Despite these challenges, initiatives like Digital India, UPI, and Aadhaar-enabled systems have strengthened the foundation for climate-smart digital ecosystems. The paper concludes with policy recommendations for integrating digital inclusion and environmental sustainability in rural development strategies.