Indexing and query optimization are essential techniques in database management that enhance the performance and efficiency of data retrieval. Indexing involves creating data structures that allow databases to quickly locate and access specific rows without scanning entire tables, similar to an index in a book. This significantly reduces execution time and resource consumption. Query optimization, on the other hand, refers to the process of refining SQL queries to ensure they run as efficiently as possible. By employing strategies such as indexing, restructuring queries, and analyzing execution plans, databases can handle large datasets and complex transactions effectively while maintaining accuracy and scalability.