Green hydrogen, produced through electrolysis powered by renewable energy, represents a pivotal decarbonisation lever. India's National Green Hydrogen Mission positions the country as a potential global hub for production, export, and industrial adoption.
The Mission targets development of significant green hydrogen production capacity, reduction in production costs to make it commercially competitive, and establishment of export corridors. It envisions India capturing a meaningful share of the global green hydrogen market by 2030, with downstream benefits for fertiliser, steel, and refining sectors.
India's heavy dependence on fossil fuel imports makes green hydrogen a strategic imperative. Domestically produced green hydrogen can substitute grey hydrogen in refineries and ammonia plants, directly reducing import bills for natural gas and crude oil while advancing net-zero commitments.
The Mission provides incentives for electrolyser manufacturing and green hydrogen production under a phased SIGHT (Strategic Interventions for Green Hydrogen Transition) programme. Bundling this with India's renewable energy capacity expansion creates a cost-reduction pathway through economies of scale.
High electrolyser costs, lack of dedicated storage and transport infrastructure, and the absence of a robust demand ecosystem remain critical barriers. Regulatory frameworks for blending, safety standards, and port-based export terminals require accelerated development to meet stated timelines.
Green hydrogen's viability hinges on bridging the cost gap with fossil alternatives through sustained policy support and infrastructure investment. Coordinated action across energy, industry, and trade ministries will determine whether India's ambition translates into durable competitive advantage.
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