India's ₹10 Lakh Crore Green Hydrogen Gamble: What It Means for the Future

2025-07-21 investment

New Delhi, Monday, 21 July 2025.
India is pouring ₹10 lakh crore into green hydrogen, aiming for 5 million tonnes annual production by 2030. This bold move could transform the energy landscape and slash fossil fuel reliance.

A Game Changer in the Green Energy Sector

India’s massive push into the green hydrogen sector is nothing short of ambitious. With a whopping ₹10 lakh crore investment planned by 2030, the country aims to produce a hefty 5 million tonnes per annum (MTPA) of green hydrogen and set up 20 gigawatts (GW) of electrolyser capacity [1][2]. This bold initiative aligns with the National Green Hydrogen Mission’s objectives to cut down on fossil fuels and curtail greenhouse gas emissions by a significant 50 million metric tonnes [1].

Economic and Environmental Wins

You might wonder why India is putting so much into green hydrogen. Well, it’s a two-pronged strategy. Economically, the sector promises to save the country ₹1 lakh crore by reducing fossil fuel imports. Environmentally, it aims to push India closer to its 2070 net-zero emissions target [1]. Plus, the investment prioritises the strengthening of the domestic electrolyser manufacturing sector, which is crucial given that India’s current capacity hovers below 1 GW but aims to leap to 20 GW by 2030 [1][4].

Industry and Policy Dynamics

The Indian states are not just bystanders in this grand plan. States like Maharashtra, Karnataka, and Gujarat have already rolled out their green hydrogen policies, offering incentives to attract investment and innovation in this space [1][5]. What’s more, the effort is supported by the government’s Production-Linked Incentive (PLI) schemes, with ₹5,258 crore earmarked specifically for green hydrogen and ₹4,440 crore for electrolysers [1]. Such policies ensure the momentum doesn’t flag and keeps the economic and technology-driven wheels turning.

Looking Abroad

Now, you might ask, isn’t all this just for local benefits? Absolutely not. Green ammonia, a derivative product, is gaining traction in international markets like Japan. Notably, exports from ports like Tuticorin and Kakinada are already underway. This sets the stage for India to potentially become a global green hydrogen and ammonia powerhouse [4]. The alignment with international policies and trends further bolsters India’s position in the world energy market [4].

Challenges on the Horizon

Despite the optimistic outlook, it’s not all roses. Infrastructure, financing, and scalability remain formidable challenges. But with India’s vast renewable energy base, experts say the country could overcome these hurdles, making green hydrogen a staple in its energy mix [5]. It’s a tough climb, no doubt, but a promising venture that’ll shape India’s future landscape.

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