India is accelerating its green hydrogen mission with INR 10 lakh crore investment potential by 2030, aiming for 5 MTPA production and 20 GW electrolysers under robust policy and global partnerships.
July 18, 2025. By EI News Network
India’s green hydrogen sector is set for a major transformation, driven by the government’s ambitious National Green Hydrogen Mission (NGHM). This was revealed in a Industry Report on Green Hydrogen curated by Avener Capital, a boutique investment bank mainly focused on Energy, Infrastructure and EV.
The mission aims to produce 5 million tonnes of green hydrogen annually and install 20 GW of electrolyser capacity by 2030, opening up an estimated INR 10 lakh crore investment opportunity.
This initiative is central to India’s strategy to cut its fossil fuel dependence and reach its net-zero emissions goal by 2070. A strong policy ecosystem is propelling the sector forward.
Key enablers include the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, backed by a INR 17,000 crore outlay, along with Production Linked Incentive (PLI) schemes targeting electrolyser and hydrogen production. Several Indian states are also stepping up, offering financial incentives and regulatory ease to accelerate adoption.
These policy measures aim to significantly bring down the Levelised Cost of Hydrogen (LCOH), from around USD 5 per kg today to a projected USD 0.8–USD 3.3 per kg by 2030. This cost drop is expected through declining renewable energy prices, lower capital expenditure, and tax reforms, making green hydrogen increasingly competitive.
Demand for green hydrogen is rising across critical industries like refining, fertilisers, and steel. Green ammonia is also gaining traction as a more stable and cost-effective carrier, especially for global shipping and export applications. India’s existing ammonia-handling infrastructure and fertiliser subsidy system provide a natural advantage for early adoption.
On the supply side, technology breakthroughs, especially in Alkaline and PEM electrolysers, are boosting efficiency and bringing down costs. Public-private collaboration is also intensifying. Under the SIGHT Programme, SECI has already allocated over 8.5 lakh tonnes of green hydrogen production capacity and 2.3 GW of electrolysers to major developers.
India is also laying the groundwork for a global export push. Plans are underway to develop dedicated hydrogen export terminals at key ports like Kandla, Tuticorin, and Kakinada. In parallel, international partnerships are taking shape, from green ammonia supply deals with Japan to hydrogen-based mobility pilots and off-grid clean energy projects.
While challenges around infrastructure, financing, and scale persist, India’s vast renewable energy base, supportive policy landscape, and strategic location give it a competitive edge. If momentum holds, the country is well-positioned to emerge as a global green hydrogen powerhouse in the decade ahead.
