New Delhi: India has emerged as the world’s leading nation in ship recycling in 2025, achieving the top global ranking and surpassing the target set under the Maritime India Vision (MIV) 2030 five years ahead of schedule.
According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India’s share in global ship recycling increased to 35.4% in 2025 from 30.1% in 2024.
The UNCTAD report revealed that recycling activity in India rose sharply to 2.99 million gross tons (GT) in 2025, marking an increase of nearly 60% from 1.86 million GT recorded in 2024.
This significant growth has enabled India to achieve the Maritime India Vision 2030 target of becoming the world’s leading ship recycling nation well ahead of the scheduled timeline.
The achievement reflects the impact of maritime policy reforms and ease-of-doing-business initiatives undertaken by the Government of India under the leadership of Prime Minister Narendra Modi.
Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said, “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.”
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Government Initiatives Driving Ship Recycling Growth
To strengthen India’s ship recycling ecosystem and capture a larger share of the global market, the Ministry of Ports, Shipping and Waterways (MoPSW) has implemented several initiatives.
- Hong Kong Convention Compliance
The Government of India enacted the Recycling of Ships Act, 2019, aimed at developing a ship recycling ecosystem aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
To support modernization, the government has extended financial assistance amounting to ₹53.5 crore, enabling 115 recycling facilities to become HKC-compliant.
- Ship-breaking Credit Note Scheme
MoPSW introduced the Ship-breaking Credit Note Scheme under which ship owners receive a credit note equivalent to 40% of the scrap value of a recycled vessel.
The credit note can be used to pay up to 5% of the value of a new vessel constructed at an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding.
- Stakeholder Engagement
The Ministry regularly engages with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies, and international organisations to identify challenges and implement targeted solutions.
- Inclusion Under European Union Ship Recycling Regulations
The Government of India is actively pursuing the inclusion of Indian recycling facilities in the European Union’s approved list under the European Union Ship Recycling Regulations (EUSRR).
Continuous engagement with relevant authorities is underway to facilitate approvals and further expand opportunities for India’s ship recycling industry.
Expansion of Alang Yard
India plans to nearly double its ship recycling capacity to approximately 9 million light displacement tons (LDT) through the planned expansion of the Alang Ship Recycling Yard.
The Government of Gujarat has prepared a comprehensive master plan to address future demand, strengthen infrastructure, and improve India’s competitiveness in the global market.
Strong Growth Prospects
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to undergo recycling globally over the next decade.
With a current global market share of 35.4%, India is well-positioned to recycle nearly 500 to 600 vessels annually while continuing to expand its capacity.
Sustainable Future
India’s rise to the top position is the outcome of a coordinated strategy focused on sustainability, regulatory reforms, infrastructure development, and industry collaboration.
With strong future demand, increasing compliance with international standards, and sustained government support, India is expected to further strengthen its leadership in recycling while advancing the objectives of the circular economy and sustainable maritime development.
