From Promise to Scale: India’s Strategic Edge in the Global Green Hydrogen Economy

India’s National Green Hydrogen Mission (NGHM) is positioning the country as a global hub for green hydrogen production, consumption, and export, with ambitious targets of 5 MMT annual production capacity by 2030, 125 GW renewable energy integration, and significant socio-economic benefits including ₹8 lakh crore investment and 6 lakh jobs.

The global green hydrogen market is undergoing rapid expansion, driven by decarbonization imperatives, falling renewable energy costs, and strong policy support. According to recent market analyses, the sector is projected to grow at a CAGR of nearly 60% between 2025 and 2034, reaching over 150 MMT capacity worldwide. Countries such as the EU members, Japan, South Korea, and Australia have adopted national hydrogen strategies, focusing on industrial decarbonization, transport, and energy security. However, challenges remain: electrolyser supply bottlenecks, financing gaps, and policy uncertainties have slowed project execution globally.

India’s advantage lies in its abundant solar and wind resources (3,700 GW potential) and record-low renewable tariffs (solar at ~$29/MWh), which enable green hydrogen production costs to approach parity with grey hydrogen (~$2–3/kg). This cost competitiveness, combined with strategic trade corridors (Rotterdam–Singapore, VOC coastal hubs), positions India as a key supplier in the recalibrating global market.

National Green Hydrogen Mission: Objectives and Goals

The NGHM, launched in 2023, has a clear objective: to make India a global hub for green hydrogen. Its main goals include:

• 5 MMT annual production capacity by 2030.

• 125 GW renewable energy capacity dedicated to hydrogen generation.

• ₹1 lakh crore savings in fossil fuel imports.

• ₹8 lakh crore investments across the hydrogen value chain.

• 6 lakh green jobs creation.

• 50 MMT CO₂ emissions averted annually.

Achievements to Date

India’s National Green Hydrogen Mission (NGHM) has achieved remarkable milestones within just two years, laying the foundation for a global leadership role in clean hydrogen. Below is a structured review of each achievement, enriched with recent data and insights from official portals and industry reports.

Electrolyser Manufacturing: India has successfully awarded 3,000 MW per annum electrolyser manufacturing capacity to 15 companies, marking a decisive step toward domestic technology development. This achievement reduces reliance on imports and positions India as a competitive supplier in the global electrolyser market. According to recent updates, the awarded firms include leading public and private sector players, ensuring diversity in technology pathways such as PEM, alkaline, and solid oxide electrolysers. This manufacturing base is expected to expand rapidly, with projections indicating India could reach 15–20 GW electrolyser capacity by 2030, aligning with global demand growth.

Production Capacity: The mission has allocated 862,000 tonnes per annum (TPA) of green hydrogen production capacity to 18 companies, covering sectors such as fertilizers, refineries, and steel. This allocation is part of SECI’s SIGHT programme, which ensures long-term offtake contracts and financial incentives. Industry reports highlight that India is on track to command 10% of global green hydrogen demand by 2030, leveraging its cost advantage and renewable energy strength.

Green Ammonia: SECI’s auctions have discovered highly competitive tariffs for 724,000 TPA of green ammonia supply to fertilizer units, with prices 35–50% lower than global benchmarks. Recent bids under the SIGHT programme revealed tariffs in the range of ₹49.75–63/kg, compared to international prices exceeding ₹80/kg. This cost edge strengthens India’s role as a supplier to both domestic fertilizer plants and export markets in Europe and Asia.

Refineries: India has allocated 200,000 TPA of green hydrogen capacity for refineries, with tenders invited for an additional 42,000 TPA. Oil Marketing Companies (OMCs) have already awarded contracts for 20,000 TPA, ensuring early adoption in refining operations. This initiative directly supports India’s import substitution goals, reducing dependence on natural gas and crude oil while decarbonizing one of the hardest-to-abate sectors.

Pilot Projects: Pilot projects are demonstrating hydrogen’s versatility across transport, steel, and shipping. In transport, 37 hydrogen-fueled vehicles (10 buses and 27 trucks) and 9 refueling stations are operational across 10 routes. In steel, five projects are pioneering 100% hydrogen-based DRI, a breakthrough for decarbonizing steelmaking. In shipping, the V.O. Chidambaranar Port Authority (VOCPA) has awarded India’s first bunkering and refueling facility, positioning the country for maritime hydrogen trade.

Hydrogen Valleys: India has launched four Hydrogen Valley Innovation Clusters (HVICs) in Jodhpur, Bhubaneswar, Pune, and Kochi, with a combined investment of ₹485 crore. These valleys integrate production, storage, and utilization, serving as living laboratories for industrial decarbonization and regional hydrogen ecosystems. They mirror successful European hydrogen valley models, ensuring India’s readiness for scale.

Research & Development: The mission has funded 23 R&D projects across safety, biomass/non-biomass hydrogen production, and applications. MNRE’s second call for proposals in 2025 focused on technologies at TRL 4-7 or higher, accelerating commercialization. Institutions such as IITs, CSIR labs, and private firms are leading these projects, ensuring indigenous innovation and global competitiveness.

Testing Facilities: To ensure safety and reliability, five hydrogen testing facilities have been supported under NGHM. These centers provide certification and validation for electrolysers, storage systems, and fuel cells, aligning India with international standards.

Skill Development: Skill development has advanced significantly, with 43 courses developed, 416 trainers aligned, and 6,336 professionals certified. The Hydrocarbon Sector Skill Council and MNRE have collaborated to ensure workforce readiness, covering hydrogen safety, operations, and maintenance. This initiative is crucial for building a skilled ecosystem to support large-scale deployment.

Standards: India has adopted and published 128 standards for hydrogen production, storage, transport, and utilization. Harmonization with EU, Japan, and South Korea’s certification frameworks ensures India’s exports meet global thresholds, strengthening credibility in international trade.

In summary, India’s NGHM achievements demonstrate rapid progress across manufacturing, production, pilots, R&D, skills, and standards. With competitive costs and strong institutional support, India is firmly on track to become a global hub for green hydrogen.

Technical and Strategic Assessment

India’s NGHM demonstrates strong alignment with global hydrogen trends:

• Cost Competitiveness: SECI bids confirm India’s ammonia prices are among the lowest globally, enhancing export readiness.

• Infrastructure Development: Port-based hubs (Hazira, Paradip, Kochi, VOC) are evolving into multi-fuel clusters, reducing storage costs and enabling scale.

• Policy and Certification: Harmonized standards allow India to meet EU, Japan, and South Korea’s import thresholds, strengthening credibility in global trade.

• Risk Mitigation: Contracts-for-difference, PLIs, and subsidies are improving project bankability.

• Innovation: Hydrogen valleys and pilot projects are creating integrated ecosystems, crucial for scaling from demonstration to commercialization.

While India may face slight delays in achieving the 5 MMT target by 2030, projections suggest at least 3 MMT capacity by 2030 and full achievement by 2032. Nevertheless, India is on track to command 10% of global green hydrogen demand by 2030, supported by its renewable energy strength and policy frameworks.

In conclusion, India’s NGHM is not only a domestic energy transition strategy but also a global competitiveness initiative. With cost advantages, infrastructure readiness, and strong policy support, India is poised to become a cornerstone of the global green hydrogen economy.

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