Report: India considers reducing tariffs to promote the development of green hydrogen energy
The Indian government is discussing and planning to exempt import duties on equipment needed for the production of green hydrogen, and reduce the current 12% Goods and Services Tax. Currently, India's green hydrogen production is almost zero, and India plans to increase green hydrogen production to 5 million tons by 2030
India hopes to promote the development of green hydrogen and become a global hub for this clean fuel.
On Friday, October 18th, according to Bloomberg citing sources, the Indian government is discussing and planning to exempt import duties on certain equipment needed for the production of green hydrogen, and reduce the current 12% goods and services tax. These measures will drive the production of green hydrogen and green ammonia in India, but the produced fuels will be limited to export rather than domestic sales.
Producing green hydrogen requires using renewable energy to separate hydrogen and oxygen atoms in water. Currently, India's green hydrogen production is almost zero, and India plans to increase green hydrogen production to 5 million tons by 2030, aiming to reduce carbon emissions from local heavy industries such as refineries and steel plants, and become a major supplier in the global green hydrogen market.
According to Bloomberg's report, India plans to invest around $187 billion in the green hydrogen production sector, with most of the export agreements reached so far mainly targeting Europe and Japan. The development of green hydrogen production has also received support from billionaires Gautam Adani and Mukesh Ambani, both of whom have announced their entry into this field. In addition, the Indian Ministry of Finance is considering including green hydrogen in the infrastructure sector to be able to obtain financing on more favorable terms.
However, this industry still faces significant challenges such as scaling up technology, reducing costs, and creating demand