Sub-national drivers of India’s green hydrogen development

India’s national government has offered strong support for the development of green hydrogen as part of the country’s clean energy transition. However, much of the actual progress in this transition will depend not on national but subnational governments. This paper argues that India’s subnational governments have significant potential to capitalise on diverse natural resource endowments while creating jobs and growing the local economy when promoting green hydrogen. At the same time, the national government will need to offer direct and indirect support to address technological, financial, and institutional constraints when promoting green hydrogen at the subnational level. The paper conducts case studies of three Indian states, namely Gujarat, Jharkhand, and Kerala, to examine developments in the hydrogen sector at the sub-national level. The paper then recommends a six-point plan to strengthen the multi-level collaboration needed to capture the full benefits of green hydrogen. The plan consists of the following: 1) tailoring skill development programme to support the green hydrogen ecosystem; 2) closing infrastructure gaps; 3) incentivising off-takers; 4) attracting investment and enabling public-private partnerships; 5) encouraging research and development (R&D); and 6) promoting co-innovation. These six points can help India realise its potential while addressing the attendant limitations of a green hydrogen transition.