Of late, the transition of global energy resource base and shift towards de-carbonization has been one of the most critical and sensitive issues in the debates and discussions on sustainable development goal index (SDGI), climate change and geopolitical policies. The issue of energy transition from fossil fuel to zero-carbon energy has serious implications in the context of energy crisis, energy affordability, security and sustainability. The Energy Transition Index (ETI) attempts to measure the performance of energy systems and readiness for energy transition. China and India are highly vulnerable to climate change, but have shown significant improvements in ETI performances. This ongoing process of assigning highest priority to sustainable development may, on the one hand, promote balanced economic growth, preserve natural resources, enhance social well-being, bring about structural transformation through technology upgradation, create green and healthier climate, but at the same time may have adverse impact on employment, investment and capital formation as well as consumption pattern and distribution. The present paper attempts to analyse both the short run and long run macroeconomic impact of various components of ETI on SDGI using the ARDL bound test model and granger causality test to find the unidimensional and bi-directional causality in the two nations. It also highlights the importance of Energy Trilemma Framework.