India has emerged as the world’s leading ship recycling nation in 2025, achieving a key target under the Maritime India Vision 2030 well ahead of schedule.
According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India’s share of the global ship recycling market increased to 35.4 percent in 2025, up from 30.1 percent in 2024.
The country’s ship recycling volume rose sharply to 2.99 million gross tons (GT) in 2025, representing an increase of nearly 60 percent from 1.86 million GT recorded a year earlier.
The achievement marks a significant milestone for India’s maritime sector and reflects the impact of policy reforms, infrastructure upgrades, and industry-wide efforts aimed at strengthening the country’s ship recycling ecosystem.
Reacting to the development, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said India’s rise to the top position demonstrates the success of sustained reforms and adherence to global environmental and safety standards.
“India’s emergence as world’s top ship recycling nation reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards under the visionary leadership of Prime Minister Narendra Modi. It reinforces India’s position as a global hub for responsible and sustainable ship recycling,” Sonowal said.
A major factor behind the sector’s growth has been the implementation of the Recycling of Ships Act, 2019, which was introduced to align India’s ship recycling industry with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), ratified by India in 2019.
To support compliance and modernization, the government has provided Rs 53.5 crore in financial assistance, helping 115 ship recycling facilities upgrade operations and meet HKC standards.
The Ministry of Ports, Shipping and Waterways has also introduced the Ship-breaking Credit Note Scheme to encourage both ship recycling and domestic shipbuilding.
Under the scheme, ship owners receive a credit note equivalent to 40 percent of the scrap value of a recycled vessel. The credit can be used toward payment of up to 5 percent of the value of a new ship constructed at an Indian shipyard.
The government has maintained regular engagement with stakeholders including the Gujarat Maritime Board, ship recycling associations, international shipping companies, classification societies, and global organisations to address operational challenges and improve competitiveness.
Efforts are also underway to secure inclusion of Indian ship recycling facilities in the European Union’s approved list of recycling yards, a move expected to further strengthen India’s position in international markets.
Looking ahead, India plans to significantly expand its recycling capacity.
The country aims to nearly double capacity to around 9 million light displacement tons (LDT) through the planned expansion of the Alang Ship Recycling Yard, one of the world’s largest ship recycling hubs.
The Government of Gujarat has already prepared a comprehensive master plan to support future growth, improve infrastructure, and enhance operational efficiency.
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled worldwide over the next decade.
With a current global market share of 35.4 percent, India is well-positioned to handle an estimated 500 to 600 vessels annually, while continuing to expand its capabilities.
India’s rise to the top of the global ship recycling industry reflects a combination of regulatory reforms, sustainability-focused policies, infrastructure development, and close industry collaboration. With growing global demand for responsible ship recycling and increasing compliance with international standards, the country is expected to further strengthen its leadership position while advancing the goals of circular economy and sustainable maritime development.
