India’s hydrogen demand is expected to nearly double to around 12 million tons per annum (MTPA) by 2030, according to a report by Nuvama Institutional Equities. The growth will be driven primarily by rising consumption in the fertiliser, refining, and petrochemical sectors.
Fertilisers and Refineries to Lead Consumption
Fertilisers will account for more than half of total hydrogen demand, with consumption projected to reach about 6.1 MTPA by 2030. At the same time, refineries will require around 4.5 MTPA as cleaner fuels and stricter emission norms increase hydrogen usage. In addition, expanding capacities in the petrochemical sector could add another 1.3 MTPA, further strengthening overall demand.
Emerging Long-Term Green Hydrogen Applications
Beyond traditional sectors, the report highlights the long-term potential of green hydrogen (GH2) in new applications. According to Nuvama, steel manufacturing, long-haul heavy-duty transportation, shipping, and power generation could gradually emerge as major GH2-consuming sectors as technology matures and costs decline.
National Green Hydrogen Mission as Policy Backbone
To support this transition, India is building its green hydrogen ecosystem under the National Green Hydrogen Mission, which serves as the country’s primary policy framework for hydrogen infrastructure development. The Mission has a total outlay of approximately ₹197 billion.
Most of the funding flows through the SIGHT (Strategic Interventions for Green Hydrogen Transition) scheme, which incentivises green hydrogen production, consumption, and electrolyser manufacturing. In parallel, pilot projects, research and development initiatives, and other mission components provide essential foundational support.
Strong State-Level Policy Momentum
Since the launch of India’s green hydrogen policy in 2022 and the formal rollout of the Mission in early 2023, 13 states have introduced their own support mechanisms. These measures include power transmission charge waivers, capital subsidies, interest support, skill development programmes, and assistance with land allocation and state taxes.
$61 Billion Opportunity for Industry
Taken together, central and state-level incentives could create a combined policy support pool of nearly USD 61 billion, according to the report. As reported by msn.com, this coordinated policy push, Nuvama notes, opens a significant window of opportunity for industrial participation across the green hydrogen value chain.
