India has launched the National Green Hydrogen Mission with an initial investment of ₹19,744 crore to establish itself as a global leader in green hydrogen production. The mission aims to overcome challenges such as the high cost of green hydrogen production and the need for a robust infrastructure for its production, storage, and transportation. The hydrogen sector faces technical and economic barriers, with the cost of green hydrogen significantly higher than grey hydrogen produced from fossil fuels. Various countries like Great Britain, Japan, and Germany are also taking significant policy initiatives to promote green hydrogen. The use of Contracts-for-Difference (CfDs) is seen as a key strategy to incentivize green hydrogen production. By guaranteeing a price for green hydrogen higher than the market rate, CfDs provide financial stability and encourage investment in the sector. Additionally, production-based subsidies are being offered over three years to support the transition to green hydrogen. However, there are concerns about the subsidy structure, which may not adequately bridge the cost gap between grey and green hydrogen. The article discusses the importance of long-term contracts and demand side interventions in overcoming challenges in the green hydrogen sector. While there are potential risks associated with fluctuating costs and subsidy durations, the focus on addressing these through policy initiatives like CfDs demonstrates a positive outlook for the industry. The government's commitment to the realisation of the green hydrogen production targets through strategic interventions is highlighted, emphasizing the need for industry-wide consultations and harmonized standards for successful implementation.