A recent report from CareEdge Ratings suggests a promising future for green hydrogen (GH2) in India. The levelised cost of green hydrogen is projected to decrease to approximately $2.1 per kg by 2029-2030. This cost reduction is attributed to an expected 35-40% decrease in electrolyser prices, a 12-14% improvement in efficiency, and supportive government policies. The report highlights that lower renewable energy costs and India's decarbonisation goals will drive the momentum of green hydrogen in the country. The Indian government's initiatives, such as Production-Linked Incentives (PLI), provide direct production incentives and electrolyser capex support to help achieve the targeted levelised cost of hydrogen (LCOH). Despite these positive developments, the current LCOH of green hydrogen is higher than grey and brown hydrogen due to factors like interstate transmission charges. To produce one million metric tonnes of GH2, a significant investment of Rs.2.40 lakh crore is required. The report emphasizes the importance of reducing electrolyser costs and improving efficiency to reach the desired levelised cost of $2.1 per kg for green hydrogen. While there are challenges ahead, the overall sentiment is positive about the potential of green hydrogen to aid in India's decarbonisation efforts and reduce reliance on fossil fuels.