India is contemplating reducing tariffs on machinery imports essential for manufacturing green hydrogen as part of its strategy to become a prominent hub for the cleaner fuel. The government, led by Prime Minister Narendra Modi, is exploring the possibility of exempting specific equipment from import duties and cutting the goods and services tax (GST) on green hydrogen, which currently stands at 12%. These changes are expected to apply to green hydrogen and green ammonia production intended for export markets rather than domestic sales. The country aims to boost green hydrogen output to 5 million tons by 2030, a significant increase from the current negligible levels, to drive the decarbonization of local heavy industries such as refineries and steel mills, while also positioning itself as a major global green hydrogen supplier. Investments totaling approximately $187 billion are proposed for green hydrogen production in India, with existing export agreements predominantly targeting Europe and Japan. Esteemed billionaires like Gautam Adani and Mukesh Ambani have shown their support for green hydrogen by announcing plans to venture into this sector. Despite these positive developments, the green hydrogen industry encounters challenges related to technology scalability, cost reduction, and demand creation. To further accelerate the sector's progress, India's finance ministry is contemplating categorizing green hydrogen as an infrastructure sector eligible for easier financing, according to sources familiar with the matter and a briefing document obtained by Bloomberg News.