As the world grapples with the urgent need to decarbonise, clean energy solutions are becoming indispensable in mitigating climate change and reducing dependence on fossil fuels. Technologies like green hydrogen are emerging as pivotal solutions in this transition, offering a sustainable alternative for sectors such as industry and transportation.

India has embraced this transition through the National Green Hydrogen Mission (NGHM), a flagship initiative aimed at positioning the country as a global leader in green hydrogen production, utilisation, and export. Launched in 2023 with an investment of ₹19,744 crore ($2.3 billion), the mission is more than just an energy transition strategy—it is a bold step toward self-reliance in clean energy. By 2030, India targets an annual production of 5 million metric tonnes (MMT) of green hydrogen, supported by 125 GW of renewable energy capacity.

Fuelling the Future: Budgeting for India’s Green Hydrogen Revolution

As of January 2025, India has made significant strides in green hydrogen adoption through regulatory frameworks, pilot projects across key industries, and large-scale electrolyser manufacturing. However, the real game-changer lies in green hydrogen’s ability to decarbonise hard-to-abate sectors such as transportation where fossil fuel dependency remains high. Green hydrogen, produced using renewable energy, presents a viable solution, particularly for heavy-duty transport, shipping, and aviation—sectors where battery-electric alternatives may not be feasible.

Despite this progress, challenges remain, particularly regarding cost. With nearly 70% of production expenses tied to electricity input, green hydrogen’s viability hinges on reducing costs through innovation, research, and policy interventions. Budget allocations play a crucial role in this transition.

While initial disbursements under the National Green Hydrogen Mission (NGHM) were minimal—₹2 lakh ($2,400) spent in 2022-23 and only ₹11 lakh ($13,200) spent in 2023-24 despite a revised budget of ₹100 crore—the government has now signalled a strong commitment. The budget for 2024-25 has been significantly increased to ₹300 crore ($36 million), with a further ₹600 crore ($72 million) earmarked for 2025-26. This financial boost is crucial to scaling up infrastructure, supporting R&D, and ensuring a competitive green hydrogen ecosystem.

India’s skilled workforce, coupled with initiatives like SIGHT (Strategic Interventions for Green Hydrogen Transition), provides a strong foundation for accelerating green hydrogen adoption. However, the question remains: Can these budgetary commitments translate into a competitive and self-sustaining hydrogen economy, particularly for transport? The answer will depend on how effectively policies, incentives, and investments align to drive large-scale adoption.

Global Lessons and India’s Roadblocks in Hydrogen Mobility

One of the most exciting recent developments is the anticipated trial run of India’s first DEMU-turned-hydrogen train in March 2025, along the Jind–Sonipat section of the Northern Railway. India faces distinct challenges in green hydrogen-based mobility, including high production costs, a lack of refuelling infrastructure, and limited domestic expertise in fuel cell technology.

With green hydrogen currently priced at ₹291–416 per kg ($3.5–5 per kg), reducing costs through policy support, R&D, and scaling up renewable energy is critical. Additionally, the government can address the infrastructure gap by investing in hydrogen corridors for trucking, hydrogen-powered buses for public transport, and refueling networks for heavy industries.

Setting Sail with Hydrogen: Charting a Course for India’s Maritime Sector

To integrate hydrogen into its maritime industry, India can prioritise green hydrogen-based fuels like green ammonia and green methanol for shipping. Ports can be equipped with hydrogen bunkering and refueling infrastructure, similar to initiatives in Europe and Japan. The government can incentivise hydrogen adoption by mandating its use in coastal and inland shipping, starting with pilot projects in key ports like Mumbai, Chennai, and Kochi. Additionally, public-private partnerships can accelerate the development of hydrogen-powered vessels and retrofitting of existing fleets. Investing in R&D for cost-effective hydrogen storage and fuel cell technology will be crucial in making hydrogen a viable alternative to conventional marine fuels. 

While electric vehicles dominate India’s clean mobility push, hydrogen remains one of the most viable solutions for long-haul transport and energy-intensive sectors. By leveraging global best practices and strategic investments, India can accelerate hydrogen adoption and build a competitive, sustainable transport ecosystem.