Green Hydrogen Demand: What India’s Policy Gap Means
The National Green Hydrogen Mission was announced in 2023, and its Strategic Interventions for Green Hydrogen Transition scheme was announced in January 2023. SIGHT provided incentives of Rs 17,490 crore, within the mission’s overall outlay of Rs 19,744 crore.
The source reports that the mission’s supply-side capacity has advanced faster than demand. Measures intended to create demand, including minimum-use shares, legally enforceable consumption targets, and model procurement guidelines, are yet to be implemented. Read the source article on India’s green hydrogen demand gap for the underlying reporting.
The source reports limited committed buyers, production costs of $3.5-5 per kg without the SIGHT subsidy and $2-3.75 per kg with it, and Rs 17,490 crore in SIGHT incentives still unclaimed.
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The subsidy is payable after production. The source reports that operational electrolyser capacity is 65-70 MW against announced capacity of 25 GW, while operational green hydrogen capacity is 12,000 tonnes against announced capacity of 11.2 MT.
Export-focused projects also face the EU requirements described in the source, including new renewable electricity generation, hourly matching of production and consumption, and geographic correlation between the renewable source and hydrogen production. India’s 2025 certification scheme, as described in the source, defines green hydrogen by emissions of no more than 2 kg carbon dioxide equivalent per kg of hydrogen.
Source
Business Today, “India is building the green hydrogen capacity, but where’s the demand?”, published October 8, 2026.
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