India Emerges as Global Powerhouse in Clean Hydrogen Momentum
India has cemented its position as a global frontrunner in the green energy transition, with top industry leaders identifying the nation as one of the most promising regions for clean hydrogen development. According to the Global Hydrogen Compass 2026, published by the Hydrogen Council, India ranks second globally in perceived momentum, trailing only China, while North American projects face significant stagnation.
The survey, which captured insights from nearly 70 CEOs of the world’s leading energy firms, reveals a sharp divide in how different regions are handling the transition to hydrogen-based infrastructure. While 94% of respondents view China as “steady or accelerating,” India follows closely with a 92% approval rating. This optimism stands in stark contrast to the sentiment regarding North America, where regulatory instability and policy reversals have cast a shadow over future development.
Government Policy as the Primary Driver
The surge in confidence surrounding India and China is largely attributed to assertive, state-backed demand signals. Industry experts suggest that these governments have successfully moved beyond theoretical debates, providing the long-term policy certainty required to attract massive capital expenditure.
Nicholas Loughlan, Managing Director of Cellcentric, noted that China has effectively served as a global “proof point” for the viability of hydrogen. By committing to large-scale deployment, these nations have effectively silenced critics who previously questioned whether hydrogen could function as a reliable industrial energy source. In India, the aggressive push toward localized production and national hydrogen missions has provided a clear roadmap for stakeholders, fostering an environment where growth is perceived as inevitable rather than speculative.
North America’s Regulatory Hurdle
While India and China gain speed, North America’s clean hydrogen sector is experiencing a period of decline. Much of this frustration stems from the premature phase-out of the 45V clean hydrogen production tax credit. Originally designed to offer up to $3/kg to support project developers, the incentive’s timeline was shortened significantly under recent shifts in the US political landscape. With projects now required to break ground before 2028 to access subsidies, many developers have been forced to pause or abandon their long-term investment plans, leading to widespread industry disillusionment.
Scaling Up: The Investment Reality
Despite the high level of optimism regarding India’s momentum, there remains a notable gap between sentiment and total capital commitment. Data from the report highlights that while India is viewed as a high-growth market, its current investment figures remain conservative compared to its global peers.
Over the past year, China added $11.8 billion to its hydrogen sector, bringing its total investment to a commanding $45 billion. Europe followed with a cumulative total of $30 billion, while North America stands at $26 billion. India’s total investment stands at $6 billion, with $500 million added in the last twelve months.
However, analysts suggest that India’s strategic position, combined with its rapidly growing manufacturing base, creates a unique opportunity for scaling. While the current dollar amount may be lower than its competitors, the rapid acceleration in policy-led demand signals suggests that India is positioning itself to close this funding gap in the coming years. As European markets grapple with the uneven implementation of the Renewable Energy Directive III (RED III) and North America struggles with policy volatility, India’s consistent and clear regulatory stance is proving to be a significant competitive advantage in the global race for clean energy dominance.
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