India’s hydrogen economy is taking shape

The „National Green Hydrogen Mission“: the policy framework 

With the „National Green Hydrogen Mission“ („NGHM“), launched in January 2023, India has established the policy framework for expanding its own hydrogen economy. The program has a total funding volume of 2.24 billion euros and aims to increase domestic production capacity for green hydrogen to at least 5 million tons per year by 2030.  

A key instrument of the „NGHM“ is the „SIGHT“ („Strategic Interventions for Green Hydrogen Transition“) program, with a total budget of 1.6 billion euros. Of this amount, 0.5 billion euros are earmarked for supporting domestic electrolyzer production and the production of green hydrogen.

In addition, the government is promoting the development of „Green Hydrogen Hubs“. Exports are also a focus: As part of the mission, export opportunities are to be created through appropriate infrastructure and strategic partnerships. For example, the German-Indian hydrogen partnership was expanded in January 2026 when German Chancellor Friedrich Merz (CDU) and Indian Prime Minister Narendra Modi agreed on joint hydrogen projects in Ahmedabad. 

In addition, the government is supporting research and development activities through the „NGHM“ with a total of 37.5 million euros. An additional 34 million euros are earmarked for cross-cutting infrastructure and support initiatives. Approximately 137 million euros are available for pilot projects—for example, in the shipping and transportation sectors. 

Key projects 

A look at the project database of India’s Ministry of New and Renewable Energy (MNRE) from early May 2026 reveals that a total of 307 projects for the production of green hydrogen are currently planned or underway. In addition, there are 22 projects in the field of electrolyzer and fuel cell manufacturing, as well as another 30 projects in other segments of the hydrogen economy. Here is a selection of current Indian pilot projects:  

Steel production: Five pilot projects have been approved in India that aim to use green hydrogen in steel production. One of these projects is being implemented by the energy company JSW Energy Ltd., which commissioned its first green hydrogen production plant in November 2025. The plant is located near the steelworks of JSW Steel Ltd. in the state of Karnataka and is intended to supply the direct reduction plant there with green hydrogen for the production of low-carbon steel. Under a seven-year off-take agreement with JSW Steel, the plant is expected to supply approximately 3,800 tons of green hydrogen per year. 

Ports and Shipping: The V.O. Chidambaranar Port Authority has awarded a contract for a project to develop bunkering and refueling infrastructure for green methanol at the port in the state of Tamil Nadu. The facility is designed to support low-carbon ship operations. It includes, among other things, approximately 2.8 kilometers of piping and a capacity of about 60,000 liters per hour. According to the authority, the facility is scheduled to begin operations in March 2026.  

Mobility: In the mobility sector, a total of 37 hydrogen-powered buses and trucks are to be deployed as part of five pilot projects, including 15 fuel cell-powered vehicles and 22 vehicles with hydrogen combustion engines. The vehicles will operate on selected routes in various regions of India and will be supported by the construction of nine hydrogen refueling stations, which will provide the infrastructure for fleet operations. The ten planned routes include connections between Jamnagar and Ahmedabad, as well as between Pune and Mumbai.

Various companies are involved in the implementation of the mobility projects, responsible for tasks such as vehicle development, hydrogen production, and infrastructure development. The projects were launched in March 2025—the vehicles are scheduled to enter service between September 2026 and March 2027. 

„Hydrogen Valley Innovation Clusters“ as real-world laboratories for the hydrogen economy 

In addition, four „Hydrogen Valley Innovation Clusters“ („HVICs“) have been established in India on a pilot scale in the regions of Jodhpur, Odisha, Pune, and Kerala. The concept, developed by the Indian Department of Science and Technology (DST), aims to map and test the entire green hydrogen value chain within geographically defined areas.  

The „HVICs“ serve as real-world laboratories where various infrastructures and application areas are analyzed under realistic conditions. By implementing these projects across different geographic regions and application fields, insights into scalability and economic viability are expected to be gained. These experiences are intended to inform the development of larger hydrogen hubs.  

Each of the four cluster regions will receive funding ranging from 1.37 million to 2.1 million euros. While the focus in Jodhpur is on hydrogen mobility, the primary goal in Odisha is to expand the production of green steel. In Pune, the focus is on both green chemicals and sustainable mobility technologies, whereas in Kerala, the focus is on the production of green ammonia, among other things. 

Market ramp-up across the states

The market ramp-up of the hydrogen economy in India is regionally concentrated in certain states. Of particular relevance are locations where potential for renewable energy, existing pipeline and port infrastructure, and industrial customers converge. 

These regions include Gujarat, Maharashtra, and Karnataka—and, in the future, Rajasthan as well. Although Tamil Nadu offers high utilization potential due to very good wind conditions, it simultaneously faces challenges in the area of water resources.  

Conclusion 

The „National Green Hydrogen Mission“ has established the policy framework needed to support the ramp-up of hydrogen production. In summary, the mission outlines three key steps: boosting demand, reducing supply bottlenecks, and creating an ecosystem. Project databases, regional cluster formations, and pilot initiatives demonstrate how concrete activities are taking shape across the entire value chain. 

In parallel, India is also targeting exports with the „NGHM“. Partnerships are thus being further expanded, as illustrated, among other things, by the collaboration between Merz and Modi in early 2026. Further developments will reveal the role India will play in the international hydrogen economy in the long term. However, it is already clear today that the market is in a dynamic growth phase with a clear political and industrial structure.