India launched the Green Hydrogen Mission to become a global clean energy leader and cut emissions in heavy industries. However, slow execution, high production costs, and water sustainability concerns threaten its success. This critical review analyzes India’s progress, budget utilization, sectoral adoption, and global competitiveness—offering actionable reforms to realign the mission.
New Delhi (ABC Live): The India Green Hydrogen Mission represents a bold attempt to transform India into a global hub for clean hydrogen production. Launched in January 2023, the mission sets an ambitious target of producing 5 million metric tonnes (MMT) of green hydrogen annually by 2030. This initiative also aims to support 60–100 GW of electrolyser capacity and mobilize more than ?8 lakh crore (US$96 billion) in investments.
Importantly, this mission is a key pillar in India’s net-zero emissions strategy by 2070. It also aligns with the government’s efforts to reduce fossil fuel imports, decarbonize heavy industry, and create green jobs. However, despite this visionary framework, execution has lagged behind. This critical review examines where the mission stands, what challenges persist, and how India can realign its approach.
What Is Green Hydrogen?
Green hydrogen is produced using renewable electricity to split water into hydrogen and oxygen through electrolysis. Unlike grey hydrogen (derived from fossil fuels), green hydrogen is completely carbon-free. This makes it ideal for hard-to-abate sectors like steel, cement, and heavy transport.
Notably, green hydrogen can also store excess renewable power and stabilize the electricity grid. Moreover, when converted into derivatives like green ammonia or methanol, it becomes easier to transport and export.
Why India Needs the Green Hydrogen Mission
India faces multiple challenges in energy and climate sectors. First, it is the third-largest emitter of CO? globally. Second, nearly all the hydrogen currently produced in India comes from fossil fuels. Third, India imports around 50% of the natural gas it uses for grey hydrogen production.
Clearly, if India intends to meet its energy independence and climate goals, transitioning to green hydrogen is essential. In addition, international markets—particularly the EU under its CBAM regime—are shifting to low-carbon imports. Therefore, investing in green hydrogen will help India protect its export competitiveness.
Mission Targets vs Actual Performance
The mission’s targets are as follows:
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? 5 MMT of green hydrogen per year by 2030
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? 60–100 GW of electrolyser capacity
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? ?8 lakh crore investment
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? 6 lakh direct and indirect jobs
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? 50 MMT of CO? emissions avoided annually
However, current performance shows a different picture:
| Metric | Status (2025) |
|---|---|
| Green H? production | <0.02 MMT (pilot level) |
| Electrolyser capacity | 2–3 GW operational |
| Jobs created | <15,000 |
| Budget spent (FY 24–25) | ?167.35 crore of ?300 crore RE |
| CO? reduction | <1 MMT/year |
| Total investment | ?30,000 crore (Govt + private) |
As evident, progress has been slower than expected, which raises questions about execution.
Budget Underutilization Hampers Growth
Although the mission began with a ?600 crore allocation for FY 2024–25, this was later revised to ?300 crore. Shockingly, only ?167.35 crore was spent.
| Year | Budget (? crore) | Revised | Spent | Utilization (%) |
|---|---|---|---|---|
| 2024–25 | 600 | 300 | 167.35 | 55.78% |
This underutilization suggests a lack of project readiness, coupled with regulatory delays.
Water Demand: A Hidden Challenge
Producing 1 kg of green hydrogen requires 10 litres of demineralized water. To meet the 5 MMT target, India will need 50 million cubic meters annually. That is a significant volume, especially given that 75% of India’s districts face water stress.
To address this, the government is in talks with coastal states like Odisha to build desalination facilities. However, implementation remains pending, and timely action is crucial.
Sectoral Use Remains Limited
Green hydrogen can decarbonize multiple sectors, but uptake is still at an early stage.
| Sector | Use Case | Status |
|---|---|---|
| Steel | Direct Reduced Iron | Feasibility |
| Fertilizer | Green Ammonia | IFFCO pilot |
| Cement | Kiln heating | R&D stage |
| Transport | Hydrogen fuel cells | 15 buses tested |
| Refining | Hydro-processing | Limited trials |
While potential is immense, adoption remains limited due to high costs and technology gaps.
How India Compares Globally
| Country | Target (2030) | Cost (?/kg) | Export Status |
|---|---|---|---|
| India | 5 MMT | ?300–400 | Emerging |
| Saudi Arabia | 4 MMT | ?130–150 | Export-ready (NEOM) |
| Australia | 3 MMT | ?150–200 | Asia-focused |
| Chile | 5 GW | ?120–160 | Low-cost exporter |
Currently, India’s green hydrogen costs too much to compete in global markets. Without targeted subsidies, India may lose the early mover advantage.
? Recommendations for Realignment
To get back on track, India should:
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? Introduce production-linked incentives for green hydrogen
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? Mandate the use of desalinated or recycled water
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? Accelerate hydrogen corridor development
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? Finalize certification aligned with EU and ISO standards
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? Facilitate state-led hydrogen hubs through PPPs
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? Create a Hydrogen Authority for single-window approvals
These steps can boost investor confidence and fast-track implementation.
Performance Scorecard
| Category | Score (out of 10) |
|---|---|
| Policy Design | 9 |
| Execution Efficiency | 4 |
| Sectoral Penetration | 5 |
| Cost Competitiveness | 4 |
| Water Sustainability | 6 |
| Global Competitiveness | 5 |
| Budget Execution | 5 |
| Overall Average | 5.4 / 10 |
Conclusion: A Green Opportunity, Not to Be Wasted
The India Green Hydrogen Mission presents a massive opportunity to lead the global clean fuel transition. However, progress has been too slow, and costs remain too high.
If India can streamline its policies, support developers, and invest in scale, the mission can still succeed. Otherwise, the country may fall behind emerging hydrogen leaders like Saudi Arabia and Chile.
Now is the time to act—before the global hydrogen race leaves India behind.
