India has emerged as the world’s leading ship recycling nation in 2025, achieving a key target under Maritime India Vision (MIV) 2030 well ahead of schedule.
According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India’s share of global ship recycling increased to 35.4% in 2025 from 30.1% in 2024. Ship recycling volumes in the country surged nearly 60% to 2.99 million gross tons (GT) in 2025, compared with 1.86 million GT in the previous year.
The achievement underscores 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.
Success of sustained policy reforms
Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, said India’s emergence as the world’s top ship recycling nation reflects the success of sustained policy reforms, industry efforts and adherence to international 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.
Government initiatives drive growth
To strengthen the country’s ship recycling ecosystem and expand its share in the global market, the Ministry of Ports, Shipping and Waterways (MoPSW) has rolled out a series of measures.
A major step was the enactment of the Recycling of Ships Act, 2019, aimed at aligning India’s ship recycling ecosystem with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
The government has also provided financial assistance of ₹53.5 crore for the modernisation of ship recycling yards, enabling 115 facilities to become HKC-compliant.
Ship-breaking Credit Note Scheme
MoPSW introduced the Ship-breaking Credit Note Scheme, under which ship owners receive credit notes equivalent to 40% of the scrap value of recycled vessels. These credits can be used to pay up to 5% of the value of a new vessel built at an Indian shipyard, supporting both ship recycling and domestic shipbuilding.
The ministry has also maintained regular engagement with stakeholders, including the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, classification societies and international organisations, to address industry challenges and implement targeted solutions.
In addition, the government is pursuing the inclusion of Indian ship recycling yards in the European Union’s approved list of recycling facilities under the European Union Ship Recycling Regulations (EUSRR).
Alang expansion to boost capacity
India is aiming to nearly double its ship recycling capacity to around 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 support future demand, improve infrastructure and strengthen India’s competitiveness in the global ship recycling market.
Strong outlook
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled globally over the next decade.
With a global market share of 35.4%, India is well-positioned to recycle between 500 and 600 vessels annually while continuing to expand its recycling capacity.
The government said India’s rise to the top position in global ship recycling reflects a coordinated strategy focused on sustainability, regulatory reforms, infrastructure development and industry collaboration. With growing demand, increasing compliance with international standards and continued policy support, the country is expected to further strengthen its leadership in ship recycling while advancing circular economy and sustainable maritime development goals.