India is uniquely positioned to become a global leader in the production, utilization, and export of Green Hydrogen, leveraging its abundant renewable energy resources, policy momentum, and rapidly growing domestic demand. The National Green Hydrogen Mission (NGHM), launched in January 2023 with an outlay of $2.4 billion, aims to establish an annual Green Hydrogen production capacity of 5 million metric tons (MMT) by 2030. This initiative is expected to mobilize investments exceeding $91.95 billion, create half a million jobs, and reduce fossil fuel imports by $11.49 billion annually, while abating 50 MMT of carbon emissions.
India’s strategic advantages include some of the lowest renewable electricity costs globally, high solar irradiance, and a robust transmission infrastructure. These factors are expected to drive down the levelized cost of Green Hydrogen to $3-3.7/kg by 2030. With the global hydrogen market projected to grow from $8.8 billion in 2024 to $199 billion by 2034, India is targeting significant export opportunities, especially to the EU, Japan, and South Korea. Key sectors identified for Green Hydrogen deployment include steel, fertilizers, refineries, transportation, and energy storage. Despite these opportunities, several challenges remain.
This report “India’s Green Hydrogen ecosystem: Strategic opportunities, key challenges, and demand potential” prepared by FICCI takes a comprehensive view of the current landscape, exploring opportunities in different sectors, identifying key challenges and barriers and assessing India’s Green Hydrogen demand potential. It also outlines actionable recommendations to accelerate Green Hydrogen adoption and enhance offtake across industries. Our views draw on extensive research, market insights, and stakeholder consultations, aiming to provide a practical roadmap for industry, policymakers and investors.
Access the report here
