India Becomes World's Largest Ship Recycling Nation

The development highlights India's growing influence in the global maritime industry and reflects the impact of policy reforms aimed at strengthening the sector.

India has secured the top position in global ship recycling, becoming the world's leading ship recycling nation in 2025. The achievement comes years ahead of the target set under the Maritime India Vision (MIV) 2030 programme and marks a major milestone for the country's maritime sector.

According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India's share of the global ship recycling market rose to 35.4% in 2025, up from 30.1% a year earlier. Ship recycling volumes also recorded strong growth, reaching 2.99 million gross tons (GT) compared to 1.86 million GT in 2024, representing an increase of nearly 60%. The development highlights India's growing influence in the global maritime industry and reflects the impact of policy reforms aimed at strengthening the sector.

Government reforms drive industry growth

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said India's rise to the top spot demonstrates the success of sustained reforms, industry participation and adherence to international environmental and safety standards.

To strengthen the ship recycling ecosystem, the government introduced the Recycling of Ships Act, 2019, aligning the industry with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019.

The government has also provided financial support worth ₹53.5 crore to modernise ship recycling facilities. As a result, 115 recycling yards have achieved compliance with international standards, helping improve environmental performance and worker safety.

Another major initiative has been the Ship-breaking Credit Note Scheme, which offers ship owners a credit note equal to 40% of the scrap value of a recycled vessel. The benefit can be used to offset part of the cost of building new ships at Indian shipyards, creating stronger links between ship recycling and domestic shipbuilding.

Expansion plans position India for future demand

The Ministry of Ports, Shipping and Waterways continues to work closely with industry stakeholders, shipping companies, classification societies and international organisations to address challenges and improve competitiveness. India is also pursuing the inclusion of its recycling yards in the European Union Ship Recycling Regulations (EUSRR) approved facility list, a move that could open new opportunities in the international market.

Future growth plans include a major expansion of the Alang Ship Recycling Yard in Gujarat. The project aims to nearly double India's recycling capacity to around 9 million light displacement tons (LDT), strengthening the country's ability to handle rising global demand.

Industry estimates from the Baltic and International Maritime Council (BIMCO) suggest that more than 16,000 ships will require recycling over the next decade. With its current market share and expanding infrastructure, India is expected to recycle between 500 and 600 vessels annually. The achievement underscores India's growing role in sustainable maritime development and the circular economy, while reinforcing its position as a global centre for responsible ship recycling.