India’s hydrogen journey is no longer confined to policy documents and pilot announcements. It is steadily transitioning into an industrial strategy backed by large-scale investments, global partnerships, and a clear decarbonisation roadmap. As the country accelerates toward its net-zero ambitions, hydrogen – particularly green hydrogen- is emerging as a cornerstone of India’s future energy economy.

The Strategic Push: National Green Hydrogen Mission

At the centre of India’s hydrogen strategy is the National Green Hydrogen Mission, launched in January 2023. The mission aims to position India as a global hub for green hydrogen production, utilisation, and export. The government has set an ambitious target of producing 5 million metric tonnes per annum (MMTPA) of green hydrogen by 2030, backed by an outlay of ₹19,744 crore. The broader economic vision includes:

• Attracting investments exceeding ₹8 lakh crore
• Creating over 6 lakh jobs
• Reducing fossil fuel imports
• Cutting nearly 50 million metric tonnes of annual CO2 emissions

The mission is supported by the SIGHT (Strategic Interventions for Green Hydrogen Transition) programme, which provides financial incentives for domestic electrolyser manufacturing and green hydrogen production. This approach reflects a dual focus: building supply capacity while stimulating demand.

Why Hydrogen Matters for India?

India is the world’s third-largest energy consumer and relies heavily on imported fossil fuels. Hard-to-abate sectors such as steel, refining, fertilisers, cement, and heavy transport cannot fully decarbonise through electrification alone. Hydrogen provides a viable alternative fuel and feedstock in these sectors.

Currently, India consumes around 6–7 million tonnes of hydrogen annually, mostly “grey hydrogen” derived from natural gas. Transitioning this existing demand to green hydrogen presents a ready domestic market even before export ambitions materialise. In sectors like steel manufacturing, green hydrogen can replace coking coal in direct reduced iron (DRI) processes. In fertiliser production, green hydrogen can substitute conventional hydrogen in ammonia manufacturing. These shifts are essential if India is to decarbonise its industrial backbone.

Industrial Momentum & Private Sector Investments

India’s corporate sector has responded aggressively to the hydrogen opportunity. Major energy and industrial players such as Reliance Industries, Adani Group, NTPC Limited, and Indian Oil Corporation have announced large-scale hydrogen and ammonia projects.

Planned projects span:

• Integrated renewable-energy-to-hydrogen complexes
• Green ammonia export terminals
• Hydrogen refuelling stations for mobility
• Pilot hydrogen blending in natural gas pipelines

Several states, including Gujarat, Rajasthan, Tamil Nadu, and Odisha, are positioning themselves as hydrogen hubs by offering land banks, transmission waivers, single-window clearances, and support for renewable energy integration. Port-led hydrogen clusters are also emerging as strategic assets. Coastal states see hydrogen and green ammonia exports as a way to leverage their renewable potential and maritime infrastructure.

Export Ambitions & Global Partnerships

India is not just looking inward; it is preparing to become a global supplier of green hydrogen and its derivatives, especially green ammonia and methanol. Europe, Japan, and South Korea are expected to be major importers as they struggle with limited renewable capacity.

India’s competitive advantages include:

• Abundant solar and wind potential
• Declining renewable tariffs
• A large engineering and manufacturing base
• Strategic trade positioning

If cost curves decline as projected, India could emerge as one of the lowest-cost producers globally by the end of the decade.

Cost Dynamics & Technology Evolution

The biggest challenge facing green hydrogen remains cost competitiveness. Today, green hydrogen production in India ranges roughly between $3–5 per kilogram, compared to $1–2 per kilogram for grey hydrogen (depending on gas prices).

However, multiple factors are expected to drive costs downward:

• Rapid decline in renewable energy prices
• Scaling of electrolyser manufacturing
• Technological innovation in alkaline and PEM electrolysers
• Improved load factors through hybrid renewable systems

Domestic manufacturing incentives under SIGHT (Strategic Interventions for Green Hydrogen Transition) are crucial in preventing over-dependence on imported electrolyser technology. As manufacturing scales, economies of scale will improve cost efficiency and strengthen supply chains.

Also Read | Green Hydrogen: Kerala’s Model for Sustainable Energy Transition

Infrastructure & Ecosystem Readiness

Hydrogen is not merely a production challenge; it requires a complete ecosystem:

• Storage facilities
• Dedicated pipelines
• Port infrastructure
• Refuelling stations
• Safety and regulatory frameworks

Hydrogen’s low volumetric density makes transportation complex and expensive. Converting hydrogen into derivatives such as ammonia can ease shipping but requires reconversion infrastructure at the destination. India must also build robust standards and certification mechanisms to validate “green” credentials for export markets. Carbon intensity verification will become a key determinant of global competitiveness.

The Road to 2030:

India’s hydrogen vision is bold, but execution will determine success. Industry analysts suggest that even if the 5 MMTPA target is partially achieved, the country would still establish itself as a major global player.

Hydrogen represents more than an energy transition; it is an industrial transformation opportunity. It offers India the chance to reduce import dependency, build advanced manufacturing capabilities, generate employment, and shape global clean-energy trade flows.
The foundation has been laid through policy support and corporate commitments. The challenge now lies in synchronising infrastructure, demand, financing, and innovation. If India can align these moving parts, hydrogen will not merely complement the renewable energy story; it will redefine the country’s energy and industrial landscape.

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