From Strategy to Implementation: India’s Hydrogen Economy Takes Shape

The Taj Mahal symbolizes India's centuries-old history, while the hydrogen economy represents a new industrial dawn. (© Pixabay)

In terms of installed renewable energy capacity, India currently ranks third in the world behind China and the U.S. In 2025, the country had the world’s third-largest solar power capacity, fourth-largest wind power capacity, and sixth-largest hydropower capacity. The Indian government has set a goal of increasing electricity generation capacity from non-fossil sources to 500 GW by 2030.

This expansion also creates important prerequisites for the production of green hydrogen. H₂ is playing an increasingly central role in India: both as a means of decarbonizing industry and mobility and as a future export product. This page provides an overview of the current state of India’s hydrogen policy and economy and highlights the projects emerging along the value chain.

The Political Foundation: The “National Green Hydrogen Mission”

Central to the development of an Indian hydrogen economy is the “National Green Hydrogen Mission” (“NGHM”), which was announced in January 2023. The funding program, with a total budget equivalent to 2.24 billion euros, aims to increase domestic production capacity for green hydrogen to at least five million metric tons per year by 2030.

A key financing instrument within the mission is the “SIGHT” program (“Strategic Interventions for Green Hydrogen Transition”), which has a budget of 1.6 billion euros. Of this amount, 0.5 billion euros will be allocated to domestic electrolyzer production and the production of green hydrogen. In addition to the “SIGHT” program, further funds are earmarked for the establishment of “Green Hydrogen Hubs.”

The “SIGHT” program focuses on two key objectives: the production of electrolysers and hydrogen. (© Image: Vulkan-Verlag GmbH, Data: Ministry of New and Renewable Energies)

In addition to its domestic focus, the “NGHM” also has international economic ambitions: By developing appropriate infrastructure and fostering strategic partnerships, India aims to become a major exporter of green hydrogen. A concrete example of this is the expansion of the German-Indian hydrogen partnership in January 2026, when Indian Prime Minister Narendra Modi and German Chancellor Friedrich Merz (CDU) agreed on joint projects in this area during a meeting in Ahmedabad.

Research and development (R&D) are also part of the mission: 37.5 million euros have been allocated for R&D activities, with an additional 34 million euros earmarked for cross-cutting infrastructure and support measures. Pilot projects in areas such as transportation and shipping are being funded with approximately 137 million euros.

Flagship Projects

The scope of hydrogen activities in the country is illustrated by the project database of India’s Ministry of New and Renewable Energy (MNRE): As of May 2026, a total of 307 projects for the production of green hydrogen are in the planning or implementation stages. In addition, there are 22 projects in the field of electrolyzer and fuel cell manufacturing, as well as 30 other projects in other segments of the hydrogen economy. Here is an overview of three selected hydrogen projects in India:

Rail Transport: India is making progress in rail transport: In July 2026, Prime Minister Modi launched the country’s first fuel-cell-powered passenger train on the route between Jind and Sonipat in the state of Haryana. The train is powered by two 1,200-kilowatt hydrogen-electric propulsion systems: Fuel cells generate electricity from hydrogen and oxygen. The ten train cars are designed to carry approximately 2,600 passengers. So far, the train has been operating at a maximum speed of 75 km/h, though it is designed for 110 km/h. A specially constructed hydrogen storage and refueling facility in the city of Jind supplies the train with fuel.

The train consists of two hydrogen-powered driving cars (DPCs) and eight trailer coaches (TCs). (© Image: Vulkan-Verlag GmbH, Data: Indian Ministry of Railways)

Maritime Industry: In the port and shipping sector, the V.O. Chidambaranar Port Authority has awarded a contract for a project to build bunkering and refueling infrastructure for green methanol. The facility in the state of Tamil Nadu includes a pipeline approximately 2.8 kilometers long and is designed to handle a flow rate of about 60,000 liters per hour. According to official statements, commissioning was scheduled for March 2026.

Steel Production: Several pilot projects for the use of green hydrogen have been approved in the steel industry. One of these has already been implemented by the energy company JSW Energy Ltd.: In November 2025, a green hydrogen production facility began operations in the state of Karnataka, located in the immediate vicinity of the JSW Steel Ltd. steel mill. Under a seven-year supply contract, the plant is expected to deliver approximately 3,800 metric tons of green hydrogen annually, which will be used in the steel mill’s direct reduction plant to produce low-carbon steel.

“Hydrogen Valley Innovation Clusters”: Hydrogen Developments Put to the Test

In addition to these individual projects, India’s Department of Science and Technology (DST) has established four “Hydrogen Valley Innovation Clusters” (HVICs) in the regions of Jodhpur, Kerala, Odisha, and Pune. The idea behind this is to map out the entire green hydrogen value chain within geographically defined areas and analyze it under real-world conditions. The insights gained from these real-world laboratories will later be used to establish larger hydrogen hubs.

Each of the four regions will receive funding ranging from 1.37 to 2.1 million euros. Each cluster has its own thematic focus: In Jodhpur, the emphasis is on hydrogen mobility, while in Odisha, the focus is on the production of green steel. In Pune, sustainable mobility is combined with the production of green chemicals, and in Kerala, the focus is on the production of green ammonia. The different regional profiles are intended to yield insights into scalability and economic viability across various application areas.

Regional Priorities: Where the Market Is Taking Off

The development of India’s hydrogen economy is not occurring uniformly across the entire country but is concentrated in states where favorable conditions converge: potential for renewable energy, existing port and pipeline infrastructure, and industrial consumers. Gujarat, Karnataka, and Maharashtra are particularly relevant in this context. All three states border the Arabian Sea. While Gujarat and Maharashtra are located in the west of the country, Karnataka lies in the southwest. In the future, Rajasthan could also play a significant role in India’s hydrogen economy. The state is located in the northwest but does not border any body of water.

In the southern state of Tamil Nadu, excellent wind conditions offer high potential for capacity utilization. Although the state also borders the Indian Ocean—specifically its marginal seas, the Gulf of Mannar and the Bay of Bengal—there are challenges regarding water resources. This could diminish Tamil Nadu’s significance for India’s hydrogen economy.

Conclusion

India’s hydrogen economy is in a dynamic development phase with a clear industrial and political framework. Regional clusters, various initiatives, and the MNRE’s project database show that numerous activities are taking place along the value chain.

In addition to production and application, the focus is also on infrastructure—including, among other things, H₂ transport via pipeline. This year’s wire & Tube India offers an opportunity to discuss this and many other topics. The trade show will take place from November 30 to December 2, 2026, at the Bombay Exhibition Center in Mumbai and will bring together international and Indian exhibitors from the wire, cable, and tube industries.

Sources:

AHK Indien

Ministerium für Neue und Erneuerbare Energien

Bundesministerium für Wirtschaft und Energie

Presse- und Informationsamt der Bundesregierung

Thyssenkrupp Nucera AG & Co. KGaA

UnivDatos

V.O. Chidambaranar Port Authority

JSW Group

GH2 India

Regierung von Indien

Department für Wissenschaft und Technologie

IRENA - International Renewable Energy Agency