India's Emerging Green Hydrogen Transition: Ambitions, Barriers and Policy Directions

This discussion paper examines the domestic and global drivers of India's green hydrogen push and develops a contextualised understanding of India's green hydrogen initiatives and the challenges to realizing them. In India, green hydrogen has been positioned as a tool for decarbonization, energy security, industrial growth, and global leadership. The National Green Hydrogen Mission, launched in 2023, targets 5 million metric tons of annual production by 2030, deep integration into hard-to-abate sectors like fertilizers and steel, and exports capturing 10% of the global market. Domestically, green hydrogen aligns with India's renewable energy expansion, surplus energy utilization, and food security needs via green ammonia production. Globally, rising demand, recurring geopolitical shocks — including the Russia-Ukraine war and the more recent Iran war — and the EU's Carbon Border Adjustment Mechanism (CBAM) create both opportunities and pressures. India also seeks to build a strategic techno-economic niche through domestic electrolyzer manufacturing, R&D, and public-private partnerships. However, significant structural challenges persist: high production costs, water and land constraints, weak infrastructure, and limited R&D capacity. Of the roughly 6 million metric tons per annum of projects announced, only around 220,000 tonnes per annum have reached the final investment decision stage, underscoring the substantial gap between ambition and reality. The paper also cautions that North-South green hydrogen partnerships, while potentially beneficial, risk creating new forms of energy dependency if not carefully structured. To bridge the gap between ambition and execution, India should pursue stronger financial incentives, streamlined regulations, infrastructure investment, and demand-side mandates.