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ARTHA

Methanol is emerging as an alternative marine fuel, supporting Charting the Future: From Vision
the decarbonisation of global trade. Synthetic fuels provide
pathways to clean energy in aviation and heavy industry where to Execution
direct electrification remains infeasible. With limitless
opportunities, green hydrogen is not merely a fuel alternative India has an ambitious green hydrogen vision. However, the
but a cornerstone of industrial modernization. government must act decisively and strategically to make the
vision a reality. Clear and long-term policy signals are
imperative to de-risk investments and encourage
What’s Holding Hydrogen Back industry-wide adoption. The government must provide firm
demand mandates in key sectors such as refining, fertilizers,
Despite the promise, hydrogen’s take-off in India faces and long-haul transport to simulate market creation. Policies
multiple challenges. The growth of green hydrogen is and investments to strengthen local supply chains and
constrained by limited demand assurance, inconsistent policy develop the infrastructure ecosystem can help reduce
signals and gaps in infrastructure. operational costs. Simplification of processes and providing
clarity in regulations can go a long way in driving growth of
Predictable, reliable demand is a critical lever for green green hydrogen.
hydrogen. Uncertainty around long-term offtake increases
early-stage risks and is impeding investment momentum. The recently launched Green Hydrogen Certification Scheme
Absence of an established carbon market adds to the issue demonstrates India’s commitment to transparency and
and makes it difficult to achieve cost parity with credibility. However, development of a robust domestic
grey hydrogen. carbon market could be a game changer. It is about time that
carbon markets in India are given due regulatory importance.
There is a lack of strong regulation like blending mandates, A well-functioning carbon pricing framework would
and a need for clarity in existing policies. For example, current incentivize industries to adopt green hydrogen by
hydrogen policies includes RE grid banking facilities, essential internalizing the cost of emissions, thereby accelerating
for cost optimization. Yet, projects connected to the decarbonisation at scale.
Inter-State Transmission System (ISTS) still await clarity on
banking provisions. Green hydrogen projects under EOU and
SEZ frameworks lack clear tax and duty benefits. Further, the Advantage India
extension of the RoDTEP scheme to cover green hydrogen
exports is still pending. Green hydrogen is not just clean energy initiative – it is a
national opportunity to lead the next era of global industrial
Investments in domestic electrolyser manufacturing, advanced transformation. With one of the lowest renewable energy
water purification, and secure storage infrastructure are in costs and strategic location, India must not miss this
early stages, increasing external dependencies. The tendering window to establish itself as a cost leader and hydrogen
process needs to be simplified as well. Recent tenders export powerhouse.
launched involve complex qualification criteria including net
worth, commercial, and renewable experience, limiting
participation. Unresolved issues like payment security Green hydrogen is not just clean
commitments from fertilizer companies are undermining energy initiative – it is a national
investor confidence and leading to delays.
opportunity to lead the next era of
global industrial transformation

India's industrial diversity offers fertile ground for early
adoption of green hydrogen. Coastal corridors such as
Gujarat and Tamil Nadu are set to redefine India’s role in the
global clean energy supply chain. In line with the Prime
Minister’s vision for a “Viksit Bharat 2047”, green hydrogen
can transform India into an advanced, climate-resilient
nation, powered by indigenous innovation and sustainable
infrastructure.

Green hydrogen is more than a fuel; it’s a blueprint for an
industrial renaissance. With strategic clarity, enabling
regulations, and focused implementation, India can not only
decarbonise its industries but also emerge as a global leader
in the hydrogen economy.

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