India has emerged as the world’s leading ship recycling nation in 2025, achieving a key target 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 of global ship recycling rose to 35.4 per cent in 2025 from 30.1 per cent in 2024, while the volume of ship recycling increased by nearly 60 per cent to 2.99 million gross tons (GT) from 1.86 million GT a year earlier. The achievement marks a significant milestone for the country’s maritime sector and reflects the impact of policy reforms and ease-of-doing-business initiatives introduced by the government.
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, said India’s emergence as the world’s top ship recycling nation demonstrates the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards under the leadership of Prime Minister Narendra Modi. He said the achievement further strengthens India’s position as a global hub for responsible and sustainable ship recycling.
To strengthen the sector, the government enacted the Recycling of Ships Act, 2019, aligning the country’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. Financial assistance of Rs 53.5 crore has been provided to modernise ship recycling yards, helping 115 facilities become HKC-compliant.
The Ministry of Ports, Shipping and Waterways has also introduced the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equal to 40 per cent of the scrap value of a recycled vessel. The credit note can be used to pay up to 5 per cent of the cost of a new vessel built at an Indian shipyard, encouraging both ship recycling and domestic shipbuilding.
The ministry has been engaging regularly with stakeholders, including the Gujarat Maritime Board, the Ship Recycling Industries Association, shipping companies, classification societies and international organisations, to address industry challenges and improve competitiveness. The government is also pursuing the inclusion of Indian ship recycling facilities in the European Union’s approved list of recycling yards.
Looking ahead, India plans to nearly double its ship recycling capacity to around 9 million light displacement tons (LDT) through the expansion of the Alang Ship Recycling Yard in Gujarat. A comprehensive master plan has been prepared to improve infrastructure and cater to growing global demand.
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 its current market share of 35.4 per cent, India is well-positioned to recycle around 500 to 600 vessels annually while continuing to expand its capacity.
The government said India’s rise to the top of the global ship recycling industry has been driven by a coordinated strategy focused on sustainability, regulatory reforms, infrastructure development and industry collaboration, placing the country in a strong position to further strengthen its leadership in the sector.
