Business
India Eyes 10 Per Cent Of Global Green Hydrogen Market As Competition with China Intensifies
Green hydrogen. (Representative image)
India is positioning itself to capture nearly 10 per cent of global demand for green hydrogen produced using renewable energy, setting up a high-stakes competition with China, which already dominates other clean energy sectors and is aggressively expanding into the green hydrogen market.
Speaking at a business summit last week, Union Power and Renewable Energy Minister Shripad Naik announced the ambitious target while highlighting substantial progress under the National Green Hydrogen Mission.
Though Naik did not specify a timeline for achieving the 10 per cent global market share, the announcement underscores India's determination to establish itself as both a major producer and key exporter in the emerging hydrogen economy.
Substantial Capacity Already Awarded
Launched in 2023, the National Green Hydrogen Mission seeks to build at least 5 million metric tonnes of annual green hydrogen production by 2030, supported by around 125 gigawatts of additional renewable energy capacity.
The government has committed an initial Rs 19,744 crore (about $2.37 billion) to support commercial-scale hydrogen production.
"Substantial progress has already been made -- 862,000 tons of production capacity per year has been awarded to 19 companies, while 3,000 megawatts of electrolyzer manufacturing capacity has been allocated to 15 firms," Naik said during the summit, Nikkei Asia reported.
The government projects that the hydrogen sector could create over 600,000 jobs by 2030, with several states including Gujarat, Maharashtra and Tamil Nadu announcing hydrogen policies offering land, water and power banking facilities to attract investment.
Strong Renewable Energy Foundation
India’s confidence in its hydrogen ambitions rests on its strong renewable energy base.
Non-fossil fuel sources now account for more than 50 per cent of installed electricity capacity, achieving the target five years ahead of schedule.
This renewable backbone is crucial for hydrogen production, which requires electrolysers powered by clean electricity.
The China Challenge
The China Challenge
Despite this momentum, India faces stiff competition from China. Leveraging its manufacturing scale and rapid renewable rollout, China has gained an early lead in hydrogen.
In the first half of this year alone, China added 212 gigawatts of solar power—over twice India’s total solar capacity as of last year.
By the end of 2024, China had reached an annual green hydrogen production capacity of 125,000 tonnes, representing half the global total, according to National Energy Administration.
Beijing plans to raise this to 200,000 tonnes by the end of this year.
China’s dominance in scale, infrastructure, and cost competitiveness could pose significant challenges to India’s export push.
Strategic Partnerships and Export Ambitions
India’s ambitions are being bolstered by global collaborations, particularly with the European Union. Earlier this year, both sides agreed to set up a joint task force to accelerate hydrogen trade, standards, and investments.
Such partnerships are critical as India looks to secure its position in a competitive field that also includes Australia, the Middle East, and Latin America.
