Policy Lab

National Green Hydrogen Mission: India's $24 Billion Bet

With a ₹19,744 crore outlay and a target of 5 million tonnes per annum by 2030, India's National Green Hydrogen Mission is among the world's most ambitious clean energy policies. We analyse the progress, challenges, and global positioning.

February 10, 2026·The Breakdown Desk·6 min read

₹19,744 crore total outlay, including ₹17,490 crore for SIGHT production-linked incentives
Target: 5 MMT green hydrogen/year by 2030, requiring 125 GW of dedicated renewable capacity
First electrolyser PLI auction awarded 1,500 MW of manufacturing capacity to 10 companies
Green hydrogen production cost target: $2/kg by 2030 (currently $4-5/kg)
India aims to capture 10% of the global green hydrogen market by 2030
Key demand centres: fertilisers (30%), refineries (25%), steel (20%), and heavy transport (15%)

Quick Facts

Mission Outlay

₹19,744 Cr

Source: MNRE

Production Target (2030)

5 MMT/year

Source: National Green Hydrogen Mission

Dedicated RE Capacity

125 GW

Source: MNRE

Current H₂ Cost

$4-5/kg

Source: IEA

Target H₂ Cost (2030)

$2/kg

Source: NGHM Document

CO₂ Abatement Potential

50 MMT/year

Source: MNRE Estimates

Global Hydrogen Race

🇨🇳

China

Green H₂ Target (2030)

15 MMT/yr

🇪🇺

European Union

Green H₂ Target (2030)

10 MMT/yr

🇺🇸

USA

Green H₂ Target (2030)

10 MMT/yr

🇮🇳

India

Green H₂ Target (2030)

5 MMT/yr

🇦🇺

Australia

Green H₂ Target (2030)

3 MMT/yr

🇯🇵

Japan

Green H₂ Target (2030)

3 MMT/yr

What's Next

2026

Second round of SIGHT PLI auction for electrolyser manufacturing

Confirmed probability

2027

Green hydrogen blending mandates for fertiliser and refinery sectors

High probability

2028

First dedicated green hydrogen production hub operational (Gujarat/Rajasthan)

Medium probability

2030

National Green Hydrogen Mission target review and new goals for 2035

Scheduled probability

Executive Summary

₹19,744 crore total outlay, including ₹17,490 crore for SIGHT production-linked incentives

Target: 5 MMT green hydrogen/year by 2030, requiring 125 GW of dedicated renewable capacity

First electrolyser PLI auction awarded 1,500 MW of manufacturing capacity to 10 companies

Green hydrogen production cost target: $2/kg by 2030 (currently $4-5/kg)

India aims to capture 10% of the global green hydrogen market by 2030

Key demand centres: fertilisers (30%), refineries (25%), steel (20%), and heavy transport (15%)

What's Next

2026

Second round of SIGHT PLI auction for electrolyser manufacturing

Confirmed probability

2027

Green hydrogen blending mandates for fertiliser and refinery sectors

High probability

2028

First dedicated green hydrogen production hub operational (Gujarat/Rajasthan)

Medium probability

2030

National Green Hydrogen Mission target review and new goals for 2035

Scheduled probability