In this paper, the Hilbert–Huang transform (HHT) approach is used for the multiscale characterization of All India Summer Monsoon Rainfall (AISMR) time series and monsoon rainfall time series from five homogeneous regions in India. The study employs the Complete Ensemble Empirical Mode Decomposition with Adaptive Noise (CEEMDAN) for multiscale decomposition of monsoon rainfall in India and uses the Normalized Hilbert Transform and Direct Quadrature (NHT-DQ) scheme for the time–frequency characterization. The cross-correlation analysis between orthogonal modes of All India monthly monsoon rainfall time series and that of five climate indices such as Quasi Biennial Oscillation (QBO), El Niño Southern Oscillation (ENSO), Sunspot Number (SN), Atlantic Multi Decadal Oscillation (AMO), and Equatorial Indian Ocean Oscillation (EQUINOO) in the time domain showed that the links of different climate indices with monsoon rainfall are expressed well only for few low-frequency modes and for the trend component. Furthermore, this paper investigated the hydro-climatic teleconnection of ISMR in multiple time scales using the HHT-based running correlation analysis technique called time-dependent intrinsic correlation (TDIC). The results showed that both the strength and nature of association between different climate indices and ISMR vary with time scale. Stemming from this finding, a methodology employing Multivariate extension of EMD and Stepwise Linear Regression (MEMD-SLR) is proposed for prediction of monsoon rainfall in India. The proposed MEMD-SLR method clearly exhibited superior performance over the IMD operational forecast, M5 Model Tree (MT), and multiple linear regression methods in ISMR predictions and displayed excellent predictive skill during 1989–2012 including the four extreme events that have occurred during this period.