India’s National Green Hydrogen Mission Faces Global Headwinds Despite Ambitious Vision

India’s National Green Hydrogen Mission (NGHM), backed by a ₹19,744 crore investment, aims to position the country as a global green hydrogen powerhouse. However, a new analysis by Eninrac Consulting reveals that India may fall significantly short of its ambitions unless it accelerates funding, infrastructure development, and policy support to match global peers.

Globally, countries like the United States, European Union, Gulf nations, and China are outpacing India in green hydrogen investments, subsidies, and export-readiness. The U.S. leads with over $13.5 billion in incentives, while Saudi Arabia and the UAE are investing over $50 billion in mega-projects. China, with a $6.7 billion state-backed push, is advancing rapidly in electrolyser manufacturing—a critical cost driver in green hydrogen production.

Despite India’s competitive renewable energy costs, production remains expensive due to dependence on imported electrolysers. India’s green hydrogen production cost, at $1.5–2.0/kg, is nearly double that of Saudi Arabia or China, where costs are projected to drop below $1/kg.

"India has the potential, but the path to global leadership in green hydrogen will require a much stronger financial and policy arsenal,” said an Eninrac spokesperson. “Only 5% of Indian green hydrogen projects have secured financing compared to over 60% in the U.S. and EU."

Key Highlights:

• India’s subsidies: $0.3–0.5/kg vs. $3–4/kg in the US and EU
• Export infrastructure remains underdeveloped compared to global peers
• Domestic demand forecast at 5 MMT by 2030 in steel, refining, and fertilizer sectors

The Road Ahead:

To meet its green hydrogen ambitions, India must:

• Scale domestic electrolyser manufacturing
• Enhance financial support and subsidy mechanisms
• Develop hydrogen export infrastructure and secure offtake agreements

While the NGHM sets a strong foundation, sustained action will be critical to ensure India’s leadership in the green hydrogen economy.

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