As the world races toward decarbonisation, green hydrogen has taken centre stage as a clean, versatile, and scalable fuel for the future. From powering industries and transport to enabling energy storage and exports, green hydrogen is being touted as the cornerstone of the next clean energy revolution.
India, with its abundant renewable resources, visionary policy backing, and surging industrial demand, is rapidly emerging as a global hub for green hydrogen innovation and production.
In 2025, India’s green hydrogen ecosystem is maturing with large-scale projects, international partnerships, and robust government incentives under the National Green Hydrogen Mission and the SIGHT programme.
These developments make it a lucrative destination for climate-focused and future-oriented investors. This article explores why India deserves a top spot on every green hydrogen investor’s radar in 2025 and beyond.
As the global push toward clean energy accelerates, green hydrogen is emerging as a transformative solution for decarbonising hard-to-abate sectors like industry, heavy transport, and power generation. India, with its robust renewable energy base, forward-looking policy initiatives, and increasing industrial demand, stands at the forefront of this green hydrogen revolution.
In 2025, the Indian green hydrogen landscape presents a compelling investment opportunity for both domestic and international stakeholders. This article explores in-depth why investing in India's green hydrogen market could be a smart and timely move.
India's renewable energy capacity has grown exponentially over the past decade. As of 2025, renewable sources account for 46.3% of the country's total electricity generation. With a long-term commitment to achieving net-zero emissions by 2070, India is diversifying its clean energy portfolio—green hydrogen being a critical component.
Green hydrogen, produced by electrolysing water using renewable electricity, is particularly important for sectors where electrification alone is not enough. Industries like fertiliser manufacturing, steel production, and oil refining require high heat or hydrogen feedstock, which green hydrogen can provide with zero carbon emissions.
India took a significant leap toward a clean energy future with the launch of the National Green Hydrogen Mission (NGHM) in 2023. This visionary policy initiative sets an ambitious target of producing 5 million metric tons of green hydrogen annually by 2030, aiming to transform India into a global hub for green hydrogen production, usage, and export.
To achieve this, the government has pledged a massive investment of over INR 8 lakh crore (approximately USD 96 billion) through a combination of public and private funding. This initiative is expected to generate over 600,000 jobs across multiple segments of the green hydrogen value chain, including manufacturing, infrastructure, and services.
Beyond economic benefits, the NGHM is central to India’s long-term strategy to reduce carbon emissions, strengthen energy independence, and cut reliance on imported fossil fuels. It also marks India’s proactive move to claim leadership in the evolving global hydrogen economy.
To support the ambitious goals of the National Green Hydrogen Mission, the Indian government launched the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, a dedicated policy initiative that runs from 2023 to 2029. With a budgetary allocation of ₹17,490 crore, the programme is strategically designed to accelerate both green hydrogen production and the manufacturing of electrolysers, which are critical for breaking down water into hydrogen using renewable electricity.
SIGHT introduces targeted Production Linked Incentives (PLIs) for two priority sectors: companies engaged in the production of electrolysers, and hydrogen producers, including those generating hydrogen as a by-product. These financial incentives aim to lower the cost of production, support technology innovation, and drive industrial-scale adoption.
By facilitating domestic manufacturing and supply chain development, the SIGHT programme seeks to establish a resilient, self-sustaining hydrogen ecosystem in India, making it globally competitive in the clean energy transition.
India's geographical and climatic diversity provides an abundant and reliable supply of renewable energy sources, making it uniquely suited for green hydrogen production at scale. The country receives high solar irradiance throughout the year and has vast wind corridors, especially in coastal and western states. Additionally, a well-developed hydroelectric network ensures consistent water availability—an essential input for the electrolysis process that generates green hydrogen.
States such as Rajasthan, Gujarat, and Tamil Nadu are rapidly emerging as renewable energy hubs due to their high solar and wind potential, robust infrastructure, and proactive state policies. These regions are well-positioned to host large-scale, renewable-powered electrolysis units integrated with storage and transport networks.
The Indian government’s initiative to designate specific areas as green hydrogen hubs adds further incentive for investors. These hubs offer shared infrastructure, ease of logistics, and reduced production costs—critical elements for making India a globally competitive player in the green hydrogen economy.
India is strategically strengthening its leadership in clean energy through international partnerships, particularly in the field of green hydrogen. One of the most significant of these collaborations is with the European Union (EU) under the India-EU Clean Energy and Climate Partnership. Now in its third phase as of November 2024, this initiative zeroes in on promoting green hydrogen development and deployment.
The partnership focuses on key areas that are vital for scaling green hydrogen infrastructure and trade. These include:
Conducting feasibility studies for large-scale hydrogen infrastructure in India.
Aligning regulatory frameworks and technical standards to ensure compatibility with global markets.
Reinforcing supply chains to ensure the reliable production and distribution of hydrogen and its derivatives.
These international efforts not only provide India with valuable access to advanced technologies and global funding channels but also position the country as a preferred partner in the global hydrogen supply chain. Such alliances are instrumental in driving investor confidence and accelerating India’s emergence as a green hydrogen powerhouse.
The India Hydrogen Alliance (IH2A) is a strategic, industry-led initiative that brings together leading private sector companies and government stakeholders to accelerate the development of a hydrogen-based economy in India. As the country positions itself to become a global powerhouse in green hydrogen, IH2A is playing a central role in shaping the future of hydrogen infrastructure, policy, and adoption.
The alliance comprises a robust network of major corporate and energy players that contribute financial backing, technical expertise, and long-term vision. Prominent IH2A members include:
BP (British Petroleum)
Hero Future Energies
Torrent Power
This diverse group spans across sectors including oil and gas, heavy industries, renewable energy, and advanced manufacturing, which strengthens the coalition’s capacity to drive a comprehensive hydrogen value chain in India.
IH2A works closely with several key government institutions, including NITI Aayog, India’s top public policy think tank. This public-private partnership ensures that national hydrogen strategies are informed by industry realities and grounded in executional feasibility.
Together, IH2A and government bodies are collaborating on:
Designing policy incentives to lower the cost of hydrogen.
Building robust supply chains for hydrogen and its derivatives.
Creating financial and regulatory frameworks to support infrastructure buildout.
Streamlining approvals for large-scale projects and R&D investments.
One of IH2A’s most impactful initiatives is its proposal to build 25 green hydrogen projects across various regions of India. These projects are not just pilot-scale demonstrations—they are intended to act as anchor investments that catalyze the formation of green hydrogen ecosystems around them.
Each project is designed to:
Integrate renewable energy with electrolyser capacity.
Facilitate localised hydrogen production for industries such as fertilisers, steel, and transport.
Attract ancillary industries and service providers.
Create regional hubs of innovation, employment, and export capability.
These anchor projects will also support infrastructure development such as pipelines, storage units, and port terminals—critical enablers for a self-sustaining green hydrogen economy.
IH2A is committed to creating a full-spectrum hydrogen ecosystem, from production and storage to distribution and end-use. The alliance's roadmap includes:
Reducing the levelised cost of hydrogen (LCOH).
Promoting hydrogen as a clean energy carrier in industrial clusters.
Supporting the creation of hydrogen corridors for long-haul transport.
Developing certification frameworks for green hydrogen and its derivatives (e.g., green ammonia).
By aligning industry interests with national policy and sustainability goals, IH2A’s work is strategically vital. It not only accelerates India’s transition to clean energy but also strengthens energy self-reliance, reduces emissions, and positions India as a preferred partner in the global hydrogen trade.
As India ramps up efforts to become a major hydrogen exporter by 2030, alliances like IH2A will continue to be instrumental in bringing scale, investment, and innovation to the sector.
India is modernising its port infrastructure to support green hydrogen export ambitions. Ports such as Kandla and Tuticorin are being upgraded to handle:
Electrolyser installations.
Hydrogen storage systems.
Pipelines for hydrogen and ammonia transport.
At Kandla, plans are underway to establish 10 MW electrolysers, marking a significant step toward creating hydrogen export terminals. The Ministry of Ports, Shipping, and Waterways is working in tandem with the Ministry of New and Renewable Energy to facilitate pilot projects focused on maritime applications of green hydrogen.
This export-ready infrastructure will allow India to serve high-demand markets like Europe, Japan, and South Korea, thereby strengthening its global trade potential.
India’s internal industrial demand is already fuelling the green hydrogen movement. Key sectors like fertilisers, refining, and steelmaking are exploring hydrogen-based alternatives. According to NITI Aayog, India’s domestic green hydrogen market could reach USD 8 billion by 2030.
India is also expected to consume over 10% of global green hydrogen output, making it both a producer and a significant consumer.
On the international front, as countries adopt national hydrogen strategies, India’s early lead allows it to become a reliable supplier. The geopolitical emphasis on clean energy independence makes India a natural trade partner for energy-importing economies.
Several factors make 2025 a particularly opportune time for investment in Indian green hydrogen:
Policy Maturity: Major frameworks like NGHM and SIGHT are now operational.
Market Entry Window: Early movers can gain substantial ground before the sector becomes saturated.
Government Support: Strong regulatory and financial incentives are already in place.
Strategic Partnerships: Investors can tap into existing collaborations and ecosystems.
Scalable Projects: India’s geography and industrial diversity offer scope for a wide range of project sizes and applications.
Conclusion: India’s Green Hydrogen Momentum is Unstoppable
India is not merely catching up with the global green hydrogen race—it is emerging as a leader. With strategic policies, strong infrastructure, rich natural resources, and growing demand, the country presents one of the most compelling cases for green hydrogen investment in the world.
For investors looking to align portfolios with future-ready, sustainable sectors, India’s green hydrogen economy offers the right mix of vision, viability, and value. With 2025 shaping up as a breakout year for clean energy, now is the time to take a close look at this high-potential sector and become part of India’s green energy success story.