India’s hydrogen leap powering a cleaner tomorrow 

September 29, 2025

India is poised to emerge as a global leader in the green hydrogen sector, leveraging its strong asset base and early momentum, according to a recent report by S&P Global. The study highlighted that the country’s potential to become a low-cost supplier of hydrogen hinges on maintaining its progress amid stiff international competition and securing long-term offtake agreements. Analysts noted that India’s strategic position, combined with its rapidly developing infrastructure, gives it a unique advantage in the emerging global hydrogen market.

The report underscored India’s achievements in building hydrogen capabilities and its growing role as a key player in the global industry. Central to this effort is the National Green Hydrogen Mission, launched by the Union Cabinet on January 4, 2023, with a budget of Rs 19,744 crore. The mission seeks to establish India as a global hub for the production, utilisation, and export of green hydrogen and its derivatives. By 2030, the initiative aims to produce five million metric tonnes annually and capture 10 per cent of the global hydrogen trade. Analysts point out that India’s low-cost production potential, coupled with its strategic geographic location, could enable exports to major markets including the European Union, Japan, and South Korea.

Union Road Transport and Highways Minister Nitin Gadkari recently accelerated the country’s green hydrogen push by launching India’s first “hydrogen highways.” The initiative will establish hydrogen fuelling stations along strategic national highway corridors, facilitating long-haul transport for hydrogen-powered freight. This step is seen as a critical part of creating the necessary infrastructure for a green hydrogen economy and encouraging adoption across the transport sector.

In addition to infrastructure development, the government is actively promoting innovation in the sector. A new call for proposals, valued at Rs 100 crore, aims to support start-ups and entrepreneurs in hydrogen production, storage, transport, and utilisation technologies. The scheme offers up to Rs 5 crore per project for pilot initiatives, with a focus on developing practical, scalable solutions for India’s green hydrogen industry.

Experts note that India’s early advantage is not limited to technology alone. The country has a strong asset base, including abundant renewable energy resources such as solar and wind, which are critical for cost-effective green hydrogen production. Analysts emphasize that maintaining this advantage will require strategic planning, investment in research and development, and collaboration with global partners.

The National Green Hydrogen Mission also reflects India’s broader commitment to cleaner energy and energy independence. By reducing reliance on fossil fuels, the country aims to lower greenhouse gas emissions and align with global climate goals. The initiative also provides an opportunity to create jobs and stimulate industrial growth, particularly in regions suited to renewable energy development and hydrogen production.

S&P Global’s assessment concludes that while global competition in green hydrogen is intensifying, India’s combination of policy support, early adoption, and strong resources positions it well to become a leading exporter and innovator in the sector. With ongoing infrastructure projects, government-backed research, and private sector participation, India is charting a path toward a sustainable hydrogen economy capable of shaping the future of global clean energy markets.