The Indian government has considerably increased the focus on green hydrogen in Budget 2025 by doubling the allocation for the National Green Hydrogen Mission to ₹600 crore from ₹297 crore in the previous year. This brings into light India’s commitment to being one of the leaders in green hydrogen production, supporting both its energy transition and environmental goals.
Key Objectives of the Green Hydrogen Mission
The National Green Hydrogen Mission targets an annual production of 5 million metric tonnes of green hydrogen by 2030. This project will contribute to a reduction in the emission of carbon and also help to achieve the renewable energy goals that India has set for itself. It is also slated to attract over ₹8 lakh crore in investments and generate approximately 6 lakh jobs by the end of the decade.
Incentives for Green Hydrogen Production
The enhanced outlay by the government will be used in two key areas: manufacturing of electrolysers, fast-tracking this aspect for production of green hydrogen, and the budget provides financial incentives to encourage the development and production of green hydrogen in India. Together, these initiatives constitute a vibrant ecosystem of green hydrogen.
Green Hydrogen Hubs
A substantial budget has been allocated to develop at least two green hydrogen hubs in India. These would be instrumental in increasing production and distribution of green hydrogen in the country. A seed funding of ₹400 crore for such projects will help to kick-start this transition by 2025-26.
Expert Comments
ICRA’s senior vice president, Prashant Vasisht, said that an increase in budgetary allocation for green hydrogen will give a strong impetus to the ecosystem in India, reflecting increased momentum in clean energy solutions and signaling that the government sees long-term potential in this sector.
Budget 2025 is an model of India’s commitment to economical energy arrangements by extending green hydrogen production. Overwhelming investment and plans for framework recommend that the nation is in a great position to play a portion within the worldwide green hydrogen market.
