New Delhi: 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 UN Conference on Trade and Development, India’s share of global ship recycling rose to 35.4% in 2025 from 30.1% in 2024. The country recycled 2.99 million Gross Tons (GT) of ships during the year, marking a nearly 60% increase from 1.86 million GT recorded in 2024.
The achievement highlights the impact of maritime sector reforms and ease-of-doing-business initiatives undertaken by the government of India.
Commenting on the development, Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal said India’s rise to the top position reflects the success of sustained policy reforms, industry participation, and adherence to global environmental and safety standards.
He said the development strengthens India’s position as a global hub for responsible and sustainable ship recycling.
To boost the sector, the Ministry of Ports, Shipping, and Waterways has implemented several measures in recent years. The government enacted the Recycling of Ships Act, 2019, in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019.
Financial assistance of Rs 53.5 crore has been provided to modernise ship recycling facilities, enabling 115 yards to become compliant with international standards.
The ministry has also introduced the Ship-breaking Credit Note Scheme. Under the scheme, ship owners receive a credit note equal to 40 per cent of the scrap value of a recycled vessel. The incentive can be used to pay up to 5 per cent of the value of a new ship built at an Indian shipyard, encouraging both ship recycling and domestic shipbuilding.
The government continues to engage with stakeholders, including the Gujarat Maritime Board, industry associations, global shipping companies, classification societies, and international organisations, to address challenges and improve the sector’s competitiveness.
Efforts are also underway to secure the inclusion of Indian ship recycling yards in the EU’s approved list of recycling facilities under the EU Ship Recycling Regulations.
To meet future demand, the Gujarat government has prepared a master plan for expanding the Alang ship recycling yard. The expansion is expected to nearly double India’s ship recycling capacity to around 9 million light displacement tons.
Industry projections remain strong. According to the Baltic and International Maritime Council, 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 capacity.
