India’s National Green Hydrogen Mission (NGHM), launched in January 2023 with an outlay of INR19,744 crore (US$2.4 billion), sets a bold target for Green Hydrogen production of 5 million metric tons (MMT) annually by 2030. The mission aims to mobilize over INR8 lakh crore (US$91.95 billion) in green energy investments, create 500,000 jobs, cut fossil fuel imports by INR1 lakh crore annually, and abate 50 MMT of CO₂ emissions.
Strategic advantages and market potential
India benefits from some of the world’s lowest renewable hydrogen sources, high solar irradiance and a unified transmission grid. These factors are expected to reduce the levelized cost of Green Hydrogen to INR260 to 310/kg (US$3–3.7/kg) by 2030, which could boost hydrogen market growth domestically and internationally. Global market growth, from US$8.8 billion in 2024 to US$199 billion by 2034, positions India as a major exporter to the EU, Japan and South Korea.
Sectoral opportunities
Hydrogen demand in India is projected to rise significantly across key sectors between 2030 and 2050, in line with the nation’s renewable energy transition and carbon-neutral goals. In 2030, the estimated demand is distributed among fertilizers (5.47 MMT), refineries (7.12 MMT), steel (5.67 MMT) and aviation (0.74 MMT). By 2050, a major shift is anticipated, particularly in the aviation sector, where demand is expected to surge to 148.85 MMT—making it the largest hydrogen-consuming sector, assuming a 2% Green Hydrogen blending mandate is maintained through 2050. The steel sector is projected to see demand rise to 30.27 MMT, driven by carbon emission reduction efforts. Refinery demand is expected to grow modestly to 8.54 MMT, while fertilizer sector demand is projected to nearly double, rising to 10.11 MMT by 2050.
Pilot projects in steel manufacturing, hydrogen mobility and maritime sectors—backed by the SIGHT programme—are accelerating the hydrogen supply chain and hydrogen infrastructure development across the country.
