3rd International Conference on Green Hydrogen (ICGH 2025)

The ₹19,744 Crore Question: India’s Push for Green Hydrogen

At the 3rd International Conference on Green Hydrogen held on November 12, 2025, the Union Minister for New & Renewable Energy flagged the National Green Hydrogen Mission (NGHM) as the fulcrum of India’s clean energy ambitions. The figure that dominated the announcement: ₹19,744 crore, the budget for the NGHM, aimed at making India a global green hydrogen hub. But amid the optimism of global leadership claims, an uncomfortable question looms. Can this substantial allocation, paired with sweeping industry promises, overcome the fundamental barriers—high costs, infrastructure deficits, and policy incoherence—that have hampered sustainable energy initiatives before?

Policy Anatomy: The National Green Hydrogen Mission

Launched in January 2023, the National Green Hydrogen Mission aims to curb dependence on fossil fuels and pave the way for decarbonization. Spearheaded by the Ministry of New and Renewable Energy (MNRE), its objectives are ambitious:

• Hard-to-abate sectors: The Mission targets industries such as steel, cement, and refining, promising a transformative reduction in emissions.
• Export aspirations: Green hydrogen derivatives like ammonia and methanol are pitched as key export products, boosting India’s economic footprint.
• Infrastructure development: Plans to establish hydrogen hubs capitalize on public-private partnerships for cutting-edge investments.

Crucially, the ₹19,744 crore allocation breaks down into ₹17,490 crore for Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), ₹1,466 crore for pilot studies, and ₹788 crore for R&D grants—all aimed at scaling domestic manufacturing.

The Mission also seeks to synergize renewable energy with hydrogen production. This is critical—even the Ministry's own data lays bare the energy intensity and cost challenges associated with electrolyser-based hydrogen production. Scaling this operation against a backdrop of India’s unsteady renewable energy capacity will require unprecedented cross-sectoral alignment, particularly across energy, transport, and industry ministries.

The Argument for Green Hydrogen

At its best, the case for India’s green hydrogen push couldn’t be clearer. A report by NITI Aayog suggests that by 2030, green hydrogen could avoid up to 6 million metric tonnes of CO2 equivalent emissions annually from the refining and fertilizer sectors alone. Additionally, this transition is projected to save ₹50,000 crore in fossil fuel imports by the same year.

On economic fronts, green hydrogen facilitates a valuable side-effect: job creation. Research from the Council on Energy, Environment, and Water (CEEW) estimates that scaling this sector can generate 7 lakh new jobs across manufacturing, logistics, and operations by 2050.

The export potential cannot be dismissed either. Countries in the European Union already show interest in long-term green hydrogen procurement partnerships, driven in part by their carbon neutrality pledges under the European Green Deal. India could position itself as a supplier in this emerging market, leveraging its geographical advantage—it boasts over 300 sunny days annually, ideal for solar-powered hydrogen generation.

The Institutional Skepticism

The optimism carries institutional blind spots. The most glaring flaw is technological immaturity—electrolyser technology, vital for green hydrogen production, remains prohibitively expensive and import-dependent. Domestic manufacturing capability, despite government promises, is crawling at a pace that may render India uncompetitive compared to hydrogen powerhouses like Germany.

Infrastructure gaps exacerbate these issues. India has fewer than 10 certified hydrogen refueling stations, compared to over 150 in Japan, showcasing how far deployment trails ambition. Even with planned policy coherence, underfunding infrastructure risks bottlenecking industrial adoption.

Global competition is another thorn. Pitting India’s budget against the $9.5 billion Hydrogen Energy Earthshot initiative in the U.S. reveals India's limited fiscal muscle. American policymakers are backing electrolyser cost reduction aggressively, while India relies on fragmented R&D pilots. Despite repeated claims from MNRE officials, a robust alignment between domestic production hubs and export targets remains elusive.

International Comparison: Germany’s Green Hydrogen Policy

Germany, a pioneer in green hydrogen commercialization, offers a sharp counterpoint to India’s approach. The German €9 billion ($10 billion) National Hydrogen Strategy, launched in 2020, has focused on subsidizing electrolyser production domestically paired with streamlined infrastructure rollouts. By 2025, 15 hydrogen refueling stations are operational exclusively for industrial sectors in Ruhr, with a stated goal of linking those stations to renewable energy grids—a factor India lacks.

Despite Germany’s progress, bottlenecks remain in scaling cost efficiencies. India should note Germany’s learning curve on regulatory harmonization, something its own state-level energy actors have lagged behind.

Judging the Stakes: Where India Stands

There is no denying that the National Green Hydrogen Mission has injected momentum into India’s clean energy landscape. Yet questions remain about its viability. Aligning ₹19,744 crore against the need for electrolyser cost subsidies, a hydrogen-specific grid infrastructure, and competitive manufacturing capacities will determine its success.

The stakes extend beyond national borders. Green hydrogen exports represent a market where losing pace to the U.S., the EU, and China could compromise India's energy independence goals. While the intent of the NGHM signals strategic foresight, the real test lies in execution—and here, India's track record on large-scale mission delivery offers little reassurance. Scaling green hydrogen demand without fixing infrastructure gaps will only replicate half-measured results witnessed in past renewable energy policies.

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