The global transition toward sustainable energy presents a monumental opportunity for nations willing to invest boldly, and India is now poised at a critical juncture to define its role in the emerging green hydrogen economy. With a comprehensive roadmap, the Confederation of Indian Industry (CII) has outlined a strategic vision to transform the nation into a production and export hub for this clean fuel. This plan is not merely an environmental aspiration but a calculated economic imperative designed to secure India’s energy independence and establish its leadership on the world stage.
Forging a Green Hydrogen Superpower: The Current Landscape and CII’s Vision
India’s strategic interest in the global green hydrogen economy is multifaceted, aiming to decarbonize its industrial base, reduce reliance on imported fossil fuels, and capture a significant share of a burgeoning international market. The nation’s recent success in rapidly expanding its non-fossil fuel capacity, particularly in solar and wind power, provides a robust foundation for this ambitious pivot. This existing infrastructure offers a competitive advantage, enabling the production of green hydrogen at potentially lower costs than in many other parts of the world.
To ensure a pragmatic and impactful rollout, the strategy identifies hard-to-abate sectors as the primary targets for initial adoption. Industries such as oil refining, fertilizers, and steel, which are traditionally high-consumption centers for grey hydrogen, represent the most logical starting points. By focusing on these core areas, the plan aims to create a foundational demand that can support the initial scaling of production facilities and drive down costs through early economies of scale.
Integral to this vision is the strategic deployment of public-private partnerships. These collaborations are envisioned as the engine for driving both technological innovation and the widespread deployment of new infrastructure. By combining government policy support with private sector agility and capital, these partnerships can accelerate the development of everything from electrolyzer manufacturing to storage and transport solutions, ensuring that India builds a comprehensive and resilient green hydrogen ecosystem.
Catalyzing Growth: Key Trends and Strategic Market Interventions
Mandating Demand: A Strategy to Ignite the Domestic Market
A central pillar of the proposed strategy is the creation of guaranteed domestic demand through government mandates. The plan advocates for phased, mandatory blending of green hydrogen in high-consumption industries, including oil refining and fertilizer production. Such a policy would provide producers with the long-term market certainty needed to make significant capital investments, thereby kickstarting a virtuous cycle of increased production and falling costs.
Furthermore, the strategy leverages the power of public procurement to create a stable demand pipeline for green industrial products. By stipulating that a percentage of materials like steel and cement used in public infrastructure projects must be sourced from green hydrogen-based manufacturing, the government can create a bankable market. This intervention would directly support producers of green steel and other low-carbon materials, fostering a domestic supply chain from the ground up.
To ensure inclusive growth, the plan also emphasizes the development of regional green hydrogen clusters, particularly in major industrial states. These hubs would enable small and medium-sized enterprises to participate in the energy transition by pooling their demand and sharing critical infrastructure costs. This approach not only lowers the barrier to entry for smaller players but also fosters localized innovation and job creation.
Securing a Global Foothold: Targeting the International Export Market
Looking beyond domestic needs, the roadmap projects India’s immense potential as a global supplier, recommending a target of capturing a 5-7.5% share of the international hydrogen import market. This ambitious goal is predicated on India’s inherent advantages in renewable energy generation and its capacity for large-scale industrial production.
To enhance the competitiveness of Indian exports, the proposal suggests granting “deemed export” status to green hydrogen derivatives such as green ammonia and methanol. This policy would provide financial incentives that level the playing field with international competitors, making Indian clean fuels more attractive to global buyers.
Market growth is expected to be further driven by proactive diplomacy and regulatory alignment. Securing bilateral trade agreements with key energy-importing nations like Germany and Japan is a top priority. Simultaneously, harmonizing Indian green hydrogen certification with accepted global standards will be crucial for ensuring seamless market access and building international trust in the quality and sustainability of Indian products.
Bridging the Gap: Overcoming Cost and Infrastructure Hurdles
The most significant immediate challenge is the substantial cost disparity between green hydrogen and its fossil fuel-based counterpart, grey hydrogen. Effectively bridging this economic gap is essential for encouraging widespread industrial adoption without imposing prohibitive financial burdens on businesses.
To address this, the plan proposes several innovative financial mechanisms. Viability gap funding, for instance, could provide direct financial support to producers to cover the initial cost difference, making their output competitive. Moreover, establishing a robust market for carbon credits would allow industries to monetize their emission reductions, creating an additional revenue stream that incentivizes the switch to cleaner fuel.
Another major hurdle is the high upfront cost of building dedicated infrastructure. The proposal outlines solutions centered on shared-use infrastructure, such as common pipelines and storage facilities, which would lower entry barriers for new producers. A common carrier model would allow multiple producers to access essential transport networks without each having to bear the full capital expenditure.
Crafting a Favorable Policy Ecosystem: CII’s Regulatory Blueprint
Recognizing the complexity of this transition, the blueprint stresses the necessity of a phased implementation plan for green hydrogen mandates. A gradual, well-communicated timeline would give industries the predictability they need to adapt their operations, invest in new technologies, and manage the transition without causing significant economic disruption.
To unlock the export market, harmonizing Indian certification with established global standards is non-negotiable. A unified and internationally recognized standard for what constitutes “green” hydrogen will ensure that Indian exports are accepted in premium markets and can compete on a level playing field, preventing trade barriers based on differing definitions or verification processes.
Navigating the evolving landscape of international carbon regulations, particularly the European Union’s Carbon Border Adjustment Mechanism (CBAM), is also a critical policy consideration. The plan calls for targeted support to help Indian exporters comply with these regulations, ensuring their products remain competitive and are not penalized by carbon-related tariffs.
The Road Ahead: India’s Trajectory as a Global Clean Energy Hub
With a clear and supportive policy framework, the green hydrogen sector has the potential to attract unprecedented levels of private and foreign investment into India. This influx of capital will be essential for building out the required infrastructure and scaling up production to meet both domestic and international demand, positioning India as a premier destination for clean energy investment.
The future market will be significantly shaped by strong bilateral trade partnerships. Collaborations with energy-intensive economies like Germany and Japan, which are actively seeking reliable suppliers of clean fuels, will provide a stable export market for Indian producers. These partnerships will not only drive economic growth but also foster technological exchange and joint innovation.
The long-term vision is for India to achieve self-reliance in its energy sector while simultaneously becoming a leading global exporter of clean energy. This dual objective aligns perfectly with the nation’s economic development goals and its commitments to climate action, heralding a new era of sustainable prosperity. As the sector matures, emerging technologies and market disruptors, such as advancements in electrolyzer efficiency and new hydrogen storage solutions, could further accelerate India’s transition.
A Strategic Imperative: Final Takeaways from CII’s Green Hydrogen Roadmap
The roadmap’s core pillars were built on a clear strategy of stimulating domestic demand, systematically reducing production costs, and aggressively boosting exports. This integrated approach was designed to create a self-sustaining ecosystem for green hydrogen in India.
The analysis consistently highlighted the need for a decisive and predictable policy framework, which was identified as the single most critical factor for providing market certainty and attracting the necessary private investment to scale the sector.
Ultimately, the plan showcased the transformative potential that the green hydrogen sector held for India’s future. It was positioned not just as an energy alternative but as a foundational element for long-term economic resilience and the achievement of the nation’s ambitious climate goals.
