Ocean Colour Remote Sensing (OCRS) and marine bio-optics play a crucial role in understanding marine ecosystems, biogeochemical cycles, and climate change. Given the significance of the Indian Ocean and its teleconnections in hydrobiological and climate-related processes, India has made substantial advancements in recent decades in OCRS. These include the successful launch of ocean colour missions (Oceansat series) and the development of expertise and infrastructure to implement OCRS technology for oceanographic and climate studies. This comprehensive review emphasizes the importance and applications of OCRS in India while also highlighting capacity building efforts to enhance research and practical applications in this field. The International Training Centre for Operational Oceanography, functioning under the Indian National Centre for Ocean Information Services, has played a key role in organizing annual short-term training programs in OCRS over the past decade, benefiting more than 2500 participants, primarily from India and the Indian Ocean rim countries. These programs primarily emphasize data availability, the use of specialized software, data analysis, and environmental monitoring, equipping trainees with the skills to incorporate OCRS into their research endeavours. This review highlights the critical need for such training initiatives to empower participants in utilizing OCRS for the development of ocean value chain services. India has an advanced academic and research framework for OCRS, with several institutions and universities (~20 numbers) offering specialized courses or incorporating OCRS-related topics into undergraduate and postgraduate programs, covering its fundamentals and applications. Significant contributions from international organizations/initiatives such as POGO, IOCCG, and PORSEC have also been instrumental in OCRS capacity building in India. Key challenges and future prospects of OCRS in India include the development of region-specific algorithms, fostering multinational and interdisciplinary collaborations, and enhancing relevant infrastructure. To address these challenges, it is essential to introduce intensive, long-duration training programs and integrate dedicated courses into Indian academia, particularly at the postgraduate level in oceanography and environmental studies.