Policy Update
Aditi Bisht
Picture Credit: The Economic Times
Background
India and Germany have had a long-standing relationship since 1947 and a strategic partnership since 2000, with a focus on climate change, sustainable development, and technology cooperation. The Indo-German Green Hydrogen Partnership has emerged as a key area of this cooperation and culminated in the signing of the Indo-German Green Hydrogen Roadmap in October 2024. This partnership is in line with both countries’ net-zero emission and clean energy transition goals. Germany is India’s largest trading partner in Europe and has been supporting energy cooperation through initiatives like the Indo-German Energy Forum (IGEF) and the biannual Intergovernmental Consultations (IGC). The partnership aims to leverage Germany’s technology and India’s renewable energy potential to strengthen Green Hydrogen production, storage, distribution, and trade.
Functioning
The Indo-German Green Hydrogen Task Force, which was formed in May 2022 under the Joint Declaration of Intent on the Green and Sustainable Development Partnership (GSDP), is the main organization to manage this cooperation. The Task Force works through four sub-working groups with the following focus areas:
1. Plant design and manufacture of Green Hydrogen
2. Quality infrastructure and legal regime
3. Finance, insurance, and trading
4. Transport, storage, and consumption
Both countries facilitate the partnership through private sector involvement and government cooperation. India offers rich renewable energy resources, and Germany offers cutting-edge technology for electrolysis, hydrogen storage, and “hydrogen valleys.” Training programs and mutual safety standard recognition also ensure global rule compliance. Parallelly, India and Germany have evolved joint cooperation in science, innovation, and technology via the Indo-German Science and Technology Centre (IGSTC) and research partnerships with organizations such as IITs, IIMs, CSIR, Max Planck Society, and Fraunhofer Gesellschaft. Priority areas include sustainable energy, innovative manufacturing, biotechnology, smart cities, digital technologies, AI, and 5G/6G infrastructure.
Performance
India’s Green Hydrogen initiative, announced in August 2022 for an estimated budget of ₹19,744 crores, will aim at achieving self-sufficiency in the production of energy by 2047 and establish India as a world leader in Green Hydrogen, green ammonia, and green methanol. Recent developments are:
Inking of a $1.3 billion deal on 21 May 2025 to develop Mulapeta port, Andhra Pradesh, as an international hub for Green Hydrogen and ammonia export by 2029, with 180,000 tonnes of hydrogen production in a year, expanding to 1 million tonnes of green ammonia.
Commissioning of clusters for hydrogen production in Gujarat, Andhra Pradesh, and Kerala.
Green Hydrogen export market expansion with prospective European allies (Germany, France, Italy, Austria, Sweden) and Asian allies (Japan, South Korea, Singapore).
Germany’s National Hydrogen Strategy, updated in July 2023, aims for 10 GW of Green Hydrogen electrolysers and an estimated hydrogen demand of 95–130 TWh by 2030, including 1.5–3 million tonnes of imports. The Indo-German Green Hydrogen Roadmap favours India’s production and export ambitions while maintaining compatibility with EU rules. India and Germany have deepened R&D collaboration, enabled student mobility (approximately 35,000 Indian students in Germany), and encouraged industrial-academic collaborations in sectors such as AI, digital technologies, and renewable energy in the area of technology and innovation.
Impact
The partnership is assisting India in the transition to renewable energy while promoting technological innovation. German expertise guarantees high standards of production, safety, and trade, while India uses its capacity for renewable energy.
The program also assists in international climate targets and India’s Paris Agreement targets. Collaborative technology enhances innovation, capacity building, and start-up growth. The number of Indian students in Germany has increased threefold over the last seven years, enhancing knowledge flow and developing the future workforce.
Emerging Issues
- Large production expenses of Green Hydrogen (~$2/kg) and electrolysis infrastructure
- Transport, storage, and supply chain challenges in Green Hydrogen
- Similarities and contrasts in Indian and EU regulations and trade barriers
- Low costs and initial development in the early stages of offshore hydrogen infrastructure
- Need for a comprehensive legal framework for Green Hydrogen in India
Way Forward
The India-Germany cooperation ought to persist in exploiting mutual strengths: India’s renewable power potential and Germany’s technological prowess. Enhancing private sector participation, reinforcing regulatory convergence, investment in R&D, and scaling up industry application are essential. Increased convergence in innovation and technology cooperation, particularly in AI, digital infrastructure, smart manufacturing, and start-ups, would increase economic development and world-wide competitiveness. The partnership demonstrates a template of a strategic bilateral partnership in achieving sustainable energy transformation, innovation-led development, and net-zero emission missions, giving shape to the vision of a cleaner, greener, and technologically superior India.
References
ICWA. (2025). India-Germany Emerging Green Hydrogen Partnership – Indian Council of World Affairs (Government of India). Share.google. https://share.google/JtuxGKMEtFmXSKKH8
India-Germany Vision to Enhance Cooperation in Innovation and Technology. (2023). Ministry of External Affairs, Government of India. https://share.google/ZTZvzgx2a8OUU83Yz
About the Contributor: Aditi Bisht is a Research Intern at IMPRI. She holds a bachelor’s degree in Journalism and Mass Communication from Vivekananda Institute of Professional Studies (VIPS). Her research interests lie in government policy and economics
Acknowledgment: The author sincerely thanks Ms. Aasthaba Jadeja and the IMPRI team for their valuable support.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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