"There were passages of play when we dominated during the series. Really, we have got to transform that into a win in the game on Monday," Collingwood told reporters on Sunday.
"I think it is probably the mental side of it rather than anything else. We have got the skills and personnel. We have to take that a little bit further and elevate it."
In the last match India, set 227 for a win, were reeling on 92-5 but won the match following a 118-run partership for the sixth wicket between Suresh Raina and Mahendra Dhoni.
In the opening match England, set a low target of 204, were 117-4 but lost their remaining wickets for a meagre 47 runs.
"We are still positive. The key is the humidity. It is very hot and I think it is going to be a cauldron out there. We have to be careful about dehydration," Collingwood said.
"We have played in Sri Lanka which is close to these conditions. We have experienced this before and it should not be an issue," he said.
Collingwood said his team bounced back from being down 3-1 to level the 2001-2002 series.
"We are not down and out yet," he said. "Fred's charisma and leadership has been excellent."
England skipper Andrew (Freddie) Flintoff with his all-round talent and down-to-earth attitude has become a hero in cricket-crazy India.
Indian skipper Rahul Dravid, who has won 14 of 18 one-dayers as captain, said he would try to maintain the momentum in trying conditions.
"It will be tough for both the teams and a challenge for both batsman and bowlers," Dravid said.
He said the form of top-order batsmen was a worry for India.
"We will like a few more runs in the top order. In the first two games we could have got a few more runs but it is a seven-match series and we hope to correct that," Dravid said.
"The wickets have been tough to bat on and both teams have struggled with their batting in the first two games, which have been low-scoring. These things happen and the guys are working hard," he added.
Dravid said the flat wicket at the Jawaharlal Nehru Stadium would help batsmen.
"I expect this wicket to last much better than the last two. Anything more than 250 runs will be a good score," said Dravid, who added that that pace bowler Munaf Patel has recovered from flu.