India is at a critical juncture, ready to adopt a revolutionary energy future driven by hydrogen fuel. This clean energy source provides an attractive answer to the country’s bold aims of reducing carbon emissions and improving energy security via the significant National Green Hydrogen Mission. Although the vision is clear and the commitment is strong, transforming this hope into a broad reality requires overcoming substantial obstacles. PM Narendra Modi stated at COP26 UNFCCC that ‘India has fulfilled its Paris commitments in both letter and spirit’.
The Dawn of the Global Hydrogen Economy: A Foundational Overview
Hydrogen’s utility and environmental credentials are not standard; they relate to the processes and feedstocks used to produce it. This difference is often oversimplified using a “color-coded” approach, which is a useful framework from which to start thinking about the range of pathways to a green fuel future.
Defining the Spectrum of Hydrogen: A “Color-Coded” Framework
| Hydrogen Color | Production Method | Primary Feedstock | Emissions Profile |
|---|---|---|---|
| Grey | Steam Methane Reforming (SMR) | Natural Gas | High Carbon |
| Blue | SMR with Carbon Capture and Storage (CCS) | Natural Gas | Low Carbon |
| Green | Water Electrolysis | Water and Renewable Energy | Zero Carbon |
| Pink/Purple | Water Electrolysis | Water and Nuclear Power | Low Carbon |
| Turquoise | Methane Pyrolysis | Natural Gas | Zero Carbon (solid carbon byproduct) |
| Brown/Black | Gasification | Coal | High Carbon |
Evolution of Hydrogen Fuel in India
India’s journey with hydrogen fuel began in the early 2000s with research into fuel cells and alternative energies, but it gained momentum post-2015 amid global climate commitments like the Paris Agreement. Key milestones include:
- 2000s: Initial R&D by institutions like the Indian Institute of Chemical Technology (IICT) and CSIR labs focused on hydrogen production from biomass and natural gas.
- 2016: The National Hydrogen Energy Roadmap outlined by the Ministry of New and Renewable Energy (MNRE) aimed at hydrogen vehicles and power generation.
- 2021: Launch of the National Hydrogen Mission (NHM) under the Atmanirbhar Bharat initiative, targeting hydrogen as a fuel for transport and industry.
- 2023: Approval of the National Green Hydrogen Mission (NGHM) with a ₹19,744 crore outlay to produce 5 million metric tonnes per annum (MMTPA) by 2030, adding 125 GW of renewable capacity.
- 2024: First incentives rolled out under NGHM, including ₹4,440 crore for electrolyser manufacturing and ₹13,000 crore for green hydrogen production.
- 2025: Awards for 862,000 tonnes per annum (TPA) green hydrogen capacity to 19 projects; ₹8 million funding for prototypes in Pune, Kerala, Bhubaneswar, and Jodhpur.
By August 2025, India has positioned itself as a potential global leader, aiming for 10% of the world market by redirecting fossil fuel incentives and mandating industry use.
A Global Snapshot: The Emerging Hydrogen Landscape
The global green hydrogen market is in its nascent stages but is growing rapidly, attracting significant investment and policy attention. The market, estimated at USD 34.7 billion in 2022, is projected to reach approximately USD 59.3 billion by 2030, with one forecast even suggesting a much higher value of USD 312.9 billion. These disparate projections highlight the dynamic and highly speculative nature of this emerging market.
Although the targets are ambitious, the transition of the world to low-emissions hydrogen is proceeding at a slower rate than was initially expected. While world hydrogen production in 2023 was 97 Mt according to the International Enegry Agency, only less than 1 percent of that was low-emissions. While there is a huge pipeline of more than 520 GW of committed electrolyzer projects, only a tiny percentage of about 4 percent have made it to final investment decision or are being built. This large gap between stated intent and actuality shows a huge global bottleneck.
India’s Vision of Hope: The National Green Hydrogen Mission
The Strategic Blueprint: Policy and Intent
ndia is making a strong move in the global hydrogen race with its National Green Hydrogen Mission (NGHM). This initiative, which got the green light from the Union Cabinet on January 4, 2023, comes with a hefty initial budget of ₹19,744 crore. It’s a well-rounded policy framework aimed at turning India into a key player in the production, use, and export of green fuel.
The mission follows a three-part plan—boosting demand, strengthening the supply side, and building the overall ecosystem through initiatives like the Green Hydrogen Transition (SIGHT) Programme. To support this, the government is actively creating a business-friendly environment by introducing a single-window clearance system on the National Single Window System (NSWS) and setting a clear Green Hydrogen standard for India.
Ambitious Targets and Projected Gains
The NGHM’s ambitions are not merely aspirational; they are articulated through a set of clear, quantitative targets for 2030 that paint a compelling picture of India’s vision for the future.
By 2030, the mission targets producing 5 million metric tons (MMT) of green hydrogen each year. To power this, about 125 GW of new renewable energy capacity will be added. The scale is huge—expected to draw investments worth over ₹8 lakh crore (around €90 billion) and generate more than 6 lakh jobs across the value chain. On the environmental side, it could cut nearly 50 MMT of CO2 emissions annually. With this momentum, India aims to meet nearly 10% of the world’s green hydrogen demand, which is projected to cross 100 MMT by the end of the decade.
India’s Green Hydrogen Dream: A Glimmer of Hope
A. Big National Targets
The roadmap is bold: Net Zero by 2070, half the energy mix coming from renewables by 2030, and at least 5 million metric tonnes (MMT) of green hydrogen produced every year by the same date. Launched in January 2023 with funding of $2.41 billion, the National Green Hydrogen Mission is at the core of this push. The plan promises not only lower dependence on costly fossil fuel imports but also deep cuts in carbon emissions.
B. Decarbonising the Hard Stuff
Some industries are tough to clean up—steel, cement, fertilisers, refineries, heavy trucks. Electricity alone can’t do the job. That’s where green hydrogen steps in as an alternative green fuel.
C. Turning Sunshine and Wind into Fuel
Few countries are as well-placed as India when it comes to renewables. Rajasthan’s deserts, Gujarat’s coast, Tamil Nadu’s breezy shores, and the wide stretches of Karnataka and Maharashtra all provide abundant solar and wind power. By 2030, India aims to build 500 GW of non-fossil power capacity, with 125 GW set aside specifically for hydrogen.
D. Government Backing
Policy support has been generous. On the national level, projects get a 25-year waiver on interstate transmission fees if they’re up by 2030, plus perks like energy banking and smoother grid access. States are competing too—Odisha, for instance, offers subsidies, tax exemptions, and tariff relaxations so steep they can slash electricity costs by up to 94%.
E. Industry Stepping In
Private players aren’t waiting around. Collectively, they’ve announced projects worth over $12 billion, targeting 12 MMT of hydrogen-based products. Real projects are already visible:
- Steel: Jindal Stainless in Haryana has launched the country’s first hydrogen plant for stainless steel, cutting carbon intensity.
- Shipping: Cochin Shipyard is building a hydrogen-powered ferry and designing a zero-emission cargo vessel for global use.
- Transport: From Leh’s hydrogen microgrids to Kargil’s refuelling station, NHPC is pushing into remote regions. Indian Railways is converting locomotives, with the first pilot running on the Jind–Sonipat stretch. NTPC is creating a hydrogen hub in Greater Noida for buses. Oil India is testing an e-bus in Assam. Indian Oil’s R&D hub is also putting hydrogen buses on trial.
- Gas Networks: NTPC is blending hydrogen into piped gas supplies in Surat. Torrent Power is experimenting in Gorakhpur, while Adani Total Gas is doing the same in Ahmedabad.
- Manufacturing & Export: Domestic manufacturing is picking up. L&T has unveiled its first electrolyser built in Gujarat. Reliance and Adani are scaling up their own facilities under government schemes. NTPC is setting up a massive hydrogen hub in Visakhapatnam, with plans for India’s largest hydrogen plant (1,200 tonnes daily) geared mainly for exports. ACME has already signed a deal to ship green ammonia from Odisha to Japan’s IHI Corporation.
The Ground Realities: Challenges on the Path
The Way Forward: Recommendations and Conclusion
Synthesizing the Hope and Reality
India’s hydrogen dream is a story of big promises and tough hurdles. The promise is clear: through the National Green Hydrogen Mission, the country aims to scale up production, draw in billions in investment, create jobs, and slash emissions. Hydrogen is being pitched as both a safety net for energy security and a fresh engine for growth. But the road is not smooth. Costs are still high, infrastructure is thin, resources are stretched, and skilled workers are in short supply. These aren’t impossible barriers, but they do mean progress will need to be steady, strategic, and well-coordinated—where policy, technology, and markets move in step with each other.
Strategic Recommendations for Policymakers
| Key Challenge | Proposed Solutions |
|---|---|
| Economic | To bring prices down, India will need to build up steady local demand—things like mandatory offtake agreements and targeted incentives can help close the gap. |
| Infrastructure | A hub-and-spoke model could work well here, with production hubs directly linked to industries that need the fuel. |
| Technological Gaps | The focus has to be on making electrolysers and other key parts at home, so the entire value chain becomes stronger and less dependent on imports. |
| Safety & Regulation | EA dedicated Hydrogen Safety Authority and clear national standards would go a long way in making sure hydrogen can scale up without compromising security. |
| Resource Crunch | Smarter policies are needed—using treated wastewater or even desalination—to make sure hydrogen doesn’t add pressure to already scarce resources. |
The Long-Term Trajectory: A Final Perspective
India’s move toward a green hydrogen future is going to be a marathon, not a sprint. It’s a tough, decades-long shift that could completely change how the country powers itself—and how the world sees it. What works in India’s favor is its huge renewable energy potential and a massive home market ready to absorb it. But the road won’t be easy. Costs are high, infrastructure is thin, safety rules need to be built, and skilled people have to be trained. Still, India has one big strength: a clear plan backed by strong policies. If the National Green Hydrogen Mission takes off the way it’s meant to, India could stand tall as an energy-independent powerhouse, a global clean energy leader, and a beacon for other nations that want to grow without harming the planet.