As the world accelerates its shift towards cleaner energy alternatives, India is emerging as one of the most promising global destinations for green hydrogen investment. Backed by policy support, robust infrastructure, and a growing domestic demand, India’s green hydrogen sector is poised for significant growth in 2025.
Here are seven compelling reasons why investors are turning their attention to India’s green hydrogen revolution:
National Hydrogen Mission Driving Policy Clarity
The Indian government’s National Green Hydrogen Mission, with an outlay of ₹19,744 crore, lays a strong foundation for the sector’s growth. It sets ambitious production targets and offers incentives for manufacturing, R&D, and pilot projects. This strategic push offers investors regulatory certainty and long-term vision.
Strong Renewable Energy Base
India is already the world’s third-largest producer of renewable energy, with abundant solar and wind capacity. This provides an ideal platform to produce green hydrogen cost-effectively, especially in regions like Gujarat, Rajasthan, and Tamil Nadu.
Growing Domestic Demand from Key Sectors
Heavy industries such as steel, fertilizers, refining, and shipping are expected to be early adopters of green hydrogen. Government mandates and incentives are encouraging these sectors to replace grey hydrogen with cleaner alternatives, creating a massive demand pipeline.
Strategic Infrastructure Development
India is fast-tracking the development of green hydrogen hubs, electrolyser manufacturing parks, and dedicated hydrogen corridors. Port connectivity, storage facilities, and transport logistics are being enhanced to support the value chain efficiently.
Competitive Production Costs on the Horizon
Experts project India will be among the lowest-cost producers of green hydrogen globally by 2030. With falling renewable energy prices, large-scale production, and domestic manufacturing of electrolysers, production costs are expected to decline steadily—boosting investor returns.
Export Opportunities to Key Markets
India is strategically positioning itself as a global supplier of green hydrogen and its derivatives like green ammonia. With Europe, Japan, and South Korea actively seeking clean fuel imports, India’s geographic location and low production cost offer strong export potential.
Private Sector and Global Interest Gaining Momentum
Leading Indian companies, including Reliance, Adani, NTPC, and Indian Oil, are investing heavily in green hydrogen. Global energy firms and sovereign funds are also exploring joint ventures and technology partnerships, signalling deepening confidence in India’s hydrogen future.
India’s green hydrogen sector offers a blend of long-term vision, economic viability, and global relevance. For investors looking to tap into the clean energy transition, 2025 presents an opportune moment to align with India’s sustainable growth trajectory.