The consumption of energy in India is increasing rapidly, and the increased dependence of energy on fossil fuels has led to the emission of greenhouse gases (GHGs), which adversely affect the climate. In response, there is a global push toward a “Clean Energy Transition” to mitigate these effects by utilizing renewable energy sources, with hydrogen emerging as a critical component. This research assesses the potential of hydrogen energy to meet the future energy demand in India. This paper discusses the opportunities and challenges related to hydrogen energy, emphasizing its ability to decarbonize hard-to-abate sectors like steel and cement, integrate renewable energy, and support heavy-duty transport. Using the India Energy Security Scenario (IESS) model developed by NITI Aayog, our analysis shows that although coal and gas reforming technologies will continue to play significant roles, electrolysis is expected to become more popular, particularly after 2050. The study also forecasts a potential hydrogen production of 40.29 terawatt-hours per year (TWh/year) in 2042 under an optimistic scenario. However, high costs, technological barriers, and lack of proper infrastructure have been cited as the main challenges to hydrogen energy production on a commercial scale and its wider adoption than the present condition. Thus, the paper concludes with the need for coordinated policy reforms, infrastructure development, and technological advancements to make India’s shift to hydrogen energy and achieve the country’s target of net-zero emissions by 2070. This transition will address climate change and ensure energy security and sustainable development.