India’s First Hydrogen Train: A Green Leap Forward

India has inaugurated its first hydrogen-powered train, operating a route between Jind and Sonipat in Haryana. This significant development is a core component of the ambitious ₹20,000 crore National Green Hydrogen Mission.

The mission aims to drastically reduce India’s heavy reliance on imported energy, a critical factor given the nation imports over 85% of its crude oil. This vulnerability makes the economy susceptible to global price volatility and geopolitical supply disruptions.

Why Green Hydrogen Matters for India

• Enhancing energy security by developing domestic alternatives to traditional fuels.
• Reducing emissions in hard-to-abate industrial sectors.
• Contributing to India’s broader 2070 net-zero emission target.
• Positioning India alongside global leaders like Japan, Germany, and the US in clean energy transport.

Despite the recent launch, the commercial rollout of green hydrogen remains in its early stages. India holds an ambitious target to produce 5 million tonnes of green hydrogen annually by 2030.

Current Capacity and Government Support

• As of February 2026, only approximately 8,000 tonnes per annum of green hydrogen capacity has been commissioned.
• The Strategic Interventions for Green Hydrogen Transition (SIGHT) program offers incentives.
• SIGHT aims to support the production of 862,000 tonnes of hydrogen.
• It also targets the manufacturing of 3,000 MW of electrolysers.
• Leading Indian corporations, including JSW Energy and Indian Oil, are initiating commercial projects to build this foundational industry.

The most significant hurdle for widespread adoption is the high production cost of green hydrogen. It currently ranges from ₹400 to ₹560 per kg, considerably more expensive than conventional grey hydrogen.

Overcoming Production Cost Challenges

• Conventional grey hydrogen is priced between ₹150 and ₹225 per kg.
• Renewable energy comprises the majority of green hydrogen production expenses.
• Commercial success hinges on technological advancements and more affordable power sources.
• Without long-term cost reductions, the industry will likely remain dependent on government subsidies.

Another risk involves the potential for India to trade its reliance on imported oil for a new dependence on imported electrolyser equipment. Localizing the manufacturing of these critical components is therefore essential.

Investors and policymakers alike should closely monitor future updates on production costs, the pace of domestic electrolyser manufacturing, and the establishment of long-term consumption agreements by major industrial users to gauge the mission’s trajectory.