A recent report by CareEdge Ratings suggests a promising outlook for green hydrogen in India, with the levelised cost expected to decrease to $2.1 per kg by 2029-2030. This reduction is attributed to a projected drop in electrolyser prices by 35-40% and an efficiency improvement of 12-14%, supported by government policies. The report highlights that lower renewable energy costs and decarbonisation goals will drive the momentum of green hydrogen in India. The introduction of Production-Linked Incentives (PLI) by the Indian government, including direct production incentives and support on electrolyser capex, is seen as a positive step towards achieving the targeted levelised cost of hydrogen. Despite the cost disparity with grey and brown hydrogen, green hydrogen is identified as a key player in India's decarbonisation strategy and reducing fossil fuel dependency. However, the report points out that significant investment of Rs. 2.40 lakh crore is required to produce one million metric tonnes of green hydrogen. Efforts are needed to reduce costs, with the current estimated levelised cost of green hydrogen standing at $3.74/kg as of 2023. To achieve the target cost of $2.1/kg, reductions in electrolyser cost and efficiency improvements are essential according to CareEdge Ratings.