India is moving in a new direction to meet its energy needs. The government has set an ambitious target of achieving a 10% share in global green hydrogen demand by 2030. With this step, India is not only working to strengthen its energy security but also positioning itself as a major global exporter of green hydrogen.
Let’s understand how India is leveraging hydrogen not just to meet its domestic energy needs but also to secure a stronger role in the global green hydrogen market.
What’s Happening?
Under the National Green Hydrogen Mission, significant progress has been made. So far, 19 companies have been allocated a total annual production capacity of 8,62,000 tonnes. Additionally, 3,000 MW of electrolyser manufacturing capacity has been distributed among 15 companies.
This mission, launched on 4 January 2023 with an outlay of Rs 19,744 crore, has the primary objective of achieving an annual green hydrogen production capacity of 5 million tonnes by 2030.
On 19 August 2025, Minister of State for Power and New & Renewable Energy, Shripad Naik, said India aims to capture around 10% of the estimated 100 million metric tonnes of global green hydrogen demand by 2030. This ambition will not only move India closer to energy self-reliance but also establish it as a key global leader in the sector.
Strategy to Reduce Production Costs
India’s goal is to reduce the cost of green hydrogen to $1 per kg by 2030, compared to the current cost of $5–6 per kg. Union Minister Nitin Gadkari, speaking at the 24th Darbari Seth Memorial Lecture organised by The Energy and Resources Institute (TERI), said that if India achieves this target, it will not only become energy self-reliant but could also emerge as a global energy exporter, much like oil-producing countries. He described hydrogen as the ‘fuel of the future’ and acknowledged that the biggest challenge lies in building filling stations and transport infrastructure.
Gadkari also noted that municipal waste could become a major source of affordable hydrogen. If methane from waste is channelled into hydrogen production instead of being used for CNG, a significant share of India’s energy needs could be met. According to him, large-scale investments will flow in only if the project is cost-effective and practical.
Progress and Challenges in the Green Hydrogen Sector
Speaking to ANI during the FICCI Green Hydrogen Summit 2025, Srivatsan Iyer, Co-Chair of the FICCI Hydrogen Energy Committee and Global CEO, said the government is strengthening transmission infrastructure and identifying new wind zones to achieve the 500 GW renewable energy target. He highlighted key achievements such as the successful reverse auction for ammonia. However, he also pointed out that continuous renewable energy supply, water availability, and long-term project financing remain major challenges.
Without addressing these issues, reducing the cost of green hydrogen will not be possible. Along with government initiatives, active participation from industry will be critical to turn this ambitious goal into reality.
What’s in it for Investors?
For investors, the green hydrogen sector offers immense potential. As India transitions toward a low-carbon economy, hydrogen demand is expected to grow rapidly over the coming decades. By 2030, the fertiliser, refinery, steel, and aviation sectors will be the primary consumers.
Soon, hydrogen demand in India is expected to rise sharply, driven mainly by fertiliser, refinery, steel, and aviation.
By 2050, the aviation sector is projected to become the largest consumer, with demand potentially reaching 148.85 MMT, assuming the 2% green hydrogen blending mandate continues. Steel demand is also expected to rise to 30.27 MMT, reflecting the industry’s decarbonisation drive. Meanwhile, refinery demand will show limited growth at 8.54 MMT, while fertiliser demand is projected to nearly double to 10.11 MMT.
This trend highlights how India’s energy consumption in the coming years will increasingly rely on green hydrogen.
What’s Next?
The global green hydrogen market is projected to grow from USD 8.78 billion in 2024 to USD 199.22 billion by 2034, at a CAGR of 41.46%. India’s market is expected to grow even faster, reaching USD 2,812.8 million by 2030, with a CAGR of 56% between 2024 and 2030.
Union Minister Nitin Gadkari reiterated that hydrogen will replace fossil fuels and play a critical role in sectors such as transportation, pharmaceuticals, chemicals, and steel. He emphasised that in the future, trains and airplanes will run on hydrogen, and the combined use of electric vehicles, biofuels, and hydrogen on a large scale will drive India toward carbon neutrality, energy self-reliance, and the $5 trillion economy goal.
*The article is for information purposes only. This is not investment advice.
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