Green hydrogen emerges as a pivotal solution for achieving sustainable energy transitions globally, promising economic prosperity and climate mitigation. This paper delves into the burgeoning interest in green hydrogen, particularly in India, highlighting its potential to revolutionize energy systems, decarbonize industries, and foster economic growth. It discusses the various production methods of hydrogen, including natural gas reforming and electrolysis, emphasizing the significance of transitioning to cleaner production methods for carbon neutrality. The paper explores the different shades of hydrogen, categorizing them based on carbon footprint and production processes. It identifies the drivers behind the growing interest in green hydrogen, such as declining costs of renewable energy and governmental commitments to net-zero emissions. The application of hydrogen across sectors, including power generation, transportation, industry, and residential/commercial usage, is discussed, showcasing its versatility and potential for decarbonization. However, despite its promise, green hydrogen faces challenges such as high production costs, infrastructure limitations, and regulatory ambiguities. The paper proposes a multifaceted approach involving R and D investments, public–private partnerships, policy incentives, and regulatory reforms to overcome these hurdles and facilitate the transition to a hydrogen economy. Finally, it underscores India’s unique opportunity to lead in the global hydrogen energy landscape, provided strategic policy interventions, industry commitment, and market expansion are realized, paving the way for a cost-effective, zero-carbon future.