Opportunity lost for green hydrogen in Budget 2024, say experts

29 Jul 2024

India’s Union Budget 2024-25 lacked significant new measures to support the green hydrogen sector, with industry experts saying the absence of initiatives in the full Budget represents a missed opportunity despite the green molecule’s growing importance in global energy strategies.

According to Vineet Bhatia, executive director, Grant Thornton India, India's fiscal support under the NGHM for green hydrogen and its derivatives is creating an initial ecosystem for establishing a market; however, additional support needs to be provided.

He said, “Support such as tax exemptions or concessional corporate tax, additional fiscal support for production of green molecules and electrolyser manufacturing, which will enhance India’s competitiveness on the global platform and compete with green subsidies offered by global counterparts.” He added that unless, like other global markets, which heavily rely on sizable green subsidies, India is uniquely placed to supply renewable electricity RTC in a cost-effective way, which would enhance the off-take by demand markets.