Cleaner technology strategy is a firm's long term planning to avoid negative externality to the natural environment and remain competitive in future markets. The paper proposes a comprehensive definition of cleaner technology strategy and presents its important aspects to derive competitive advantages based on an empirical study of sixty firms across the industry sectors in India. A measure of cleaner technology strategy was constructed and, tested for its reliability and validity. Descriptive statistics was used to understand the relative importance of competitive aspects of cleaner technology strategy in Indian firms. The result shows that cleaner technology strategy derived from top management's vision of future technologies and ability to manage risk due to natural environment play a critical role in implementation of cleaner technology strategy. Firm's ability to pursue regulators for additional benefits, ability to manage risk associated with failures and imitation, and focus on up-gradation of in-house technological capabilities help in re-positioning to derive competitive advantages. The results also indicate that sustainable solutions offer differential competitive advantages across the industry sectors and firm's focus to update skill set of employees is also linked with industry sectors. The paper contributes to existing literature by making distinction between cleaner technology strategy and other strategies like pollution prevention and product stewardship. It further argues the strategic perspective of cleaner technology, cleaner production and eco-friendly products to develop necessary attributes for competitiveness. It also provides a measurement tool for the managers to check the performance of their firm to achieve the goals of cleaner technology strategy. Further, the paper provides important managerial, policy and research implications.