Green hydrogen is entering a defining phase. The early focus was rightly on building supply through policy support, investment and renewable energy expansion. The next phase will be defined by something equally important: Building markets. That shift matters now because energy security has once again become central to global economic strategy. Geopolitical uncertainty, supply chain disruptions and volatile fuel markets have changed how countries think about their energy future. Green hydrogen is, therefore, no longer just a decarbonisation solution; it is increasingly seen as a strategic energy vector that can diversify fuel sources, strengthen industrial competitiveness and improve long-term energy resilience. Hydrogen compartments are on each end of the 10-car train set. (Courtesy: Medha)For India, this is a significant opportunity. Through the National Green Hydrogen Mission, the country has created a strong foundation for supply, backed by ambitious production targets, a growing renewable energy base and an enabling policy framework. But India’s leadership in green hydrogen will not be determined by production capacity alone; it will depend on how effectively it can build both domestic and export-led demand markets and bridge the affordability gap between clean hydrogen and conventional alternatives, creating the conditions for sustained commercial adoption. That is the real challenge ahead. Given the capital-intensive nature of the industry, projects need long-term demand, bankable offtake and commercial certainty to reach final investment decision and move into execution. The next phase of India’s hydrogen journey must therefore focus on demand creation. India does not need to start from zero as refineries, steel producers and fertiliser manufacturers already consume significant volumes of hydrogen and ammonia, albeit through fossil fuel-based production. Replacing these existing use cases with green alternatives can create the anchor demand needed to scale production while cutting emissions in India’s hard-to-abate sectors. Policy will be critical in enabling this transition. Long-term procurement frameworks, demand aggregation, sectoral mandates and phased incentives for green fuel adoption can accelerate commercial uptake and reduce risk for both producers and consumers. Recent refinery initiatives and SECI’s green ammonia procurement tenders are encouraging because they move the market beyond production incentives and towards durable demand. Such mechanisms improve offtake visibility, strengthen project bankability and support investment at scale. As adoption grows, demand will expand beyond today’s industrial applications. Green hydrogen derivatives like ammonia and methanol can support decarbonisation across shipping, marine bunkering and chemical sectors, while hydrogen-derived fuels may play an increasing role in sectors such as sustainable aviation. These applications can create new industrial clusters and strengthen India’s clean energy value chain. As global trade in green hydrogen and its derivatives grows, India also has an opportunity to emerge as a reliable supplier to international markets. Recent export agreements show that this transition is already underway. Markets such as Japan are creating long-term demand through structured procurement mechanisms like LTDA (Long Term Decarbonisation Auction), while Europe continues to be another strategically important market; with the implementation of RED III and the evolution of Renewable Fuels of Non-Biological Origin (RFNBO) requirements that will shape future imports of renewable fuels. In this evolving landscape, internationally aligned certification frameworks will be essential to keeping Indian producers trusted and competitive. Domestic demand and export competitiveness are not competing priorities, they reinforce one another. A strong home market creates scale, improves asset utilisation, strengthens supply chains, and enhances cost competitiveness. Export markets attract investment, broaden commercial opportunity and accelerate innovation. Together, they create the conditions for a resilient and globally competitive hydrogen ecosystem. The strategic importance of these measures extends beyond the hydrogen sector itself. As India's economy continues to grow, building a diversified, resilient and competitive energy system will become increasingly important. Green hydrogen has the potential to support this transition by strengthening industrial capability, enabling new manufacturing value chains and enhancing long-term energy resilience. India has an opportunity to build one of the world's most competitive hydrogen markets, one that is underpinned by strong domestic demand, connected to global trade and capable of supporting the country's long-term economic and industrial ambitions. To fully capture this opportunity, faster deployment and wider rollout, affordability, availability and certified sustainability of green fuels remain critical factors to be addressed further. That is ultimately what will determine India's leadership in the global hydrogen and green fuels economy. (The views expressed are personal)This article is authored by Nitin Yadav, head, Hydrogen Business, Gentari India.