Hydrogen Highways: India’s Leap Toward a Cleaner, Greener Tomorrow

Updated: December 14, 2025 16:14

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India’s hydrogen demand is poised to double to 12 million tonnes by 2030, primarily driven by fertiliser, refining, and petrochemical sectors, with strong policy backing from the National Green Hydrogen Mission and state-level incentives.

India is on the cusp of a major energy transformation, with hydrogen demand projected to nearly double to 12 million tonnes per annum by 2030, according to the latest Nuvama Institutional Equities report. This surge is being driven by key sectors including fertilisers, refining, and petrochemicals, which together are expected to account for the bulk of future demand.

Sectoral Breakdown of Demand:

Fertiliser sector demand is forecasted to reach 6.1 million tonnes per annum, making it the largest consumer of hydrogen in India.
Refineries are set to require around 4.5 million tonnes annually, driven by both domestic needs and export-oriented production.
Petrochemicals are expected to add another 1.3 million tonnes, as new industrial capacities come online.

Policy Push and Green Hydrogen Growth:

India’s National Green Hydrogen Mission, backed by an outlay of approximately ₹19,700 crore, is central to this growth. The mission’s SIGHT scheme supports green hydrogen production, usage, and electrolyser manufacturing, with additional support coming from pilot projects and R&D initiatives. Since the policy’s launch in 2022, 13 states have rolled out their own incentives, including waivers on transmission charges, subsidies, and tax concessions. These measures, combined with central government backing, could create a support pool of nearly $61 billion, fostering broad industry participation.

Future Outlook and Global Ambitions:

Long-term, green hydrogen is expected to enter new sectors such as steel, long-haul transport, shipping, and power generation. India aims to capture about 10% of the global green hydrogen market by 2030, positioning itself as both a major producer and exporter. Pilot projects in steel, mobility, and shipping are already underway, signaling a shift toward hard-to-abate sectors.

Key Highlights

Hydrogen demand in India set to double to 12 million tonnes by 2030.
Fertilisers, refining, and petrochemicals to lead demand growth.
National Green Hydrogen Mission drives infrastructure and policy support.
Central and state incentives could total $61 billion, boosting industry participation.
Green hydrogen uptake to expand into steel, transport, and power sectors.

Source: Nuvama Institutional Equities report, ANI, Economic Times, Press Information Bureau

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