India becomes world’s top ship recycling nation in 2025, driven by policy reforms, rising capacity and global demand for sustainable dismantling of ageing vessels, reports India Daily News Desk
India has emerged as the world’s leading ship recycling nation in 2025, marking a significant milestone in its maritime ambitions and signalling a structural shift in the global ship-breaking industry. The achievement, confirmed by the United Nations Conference on Trade and Development, comes years ahead of the government’s stated target under Maritime India Vision 2030.
According to the latest UNCTAD data, India’s share of global ship recycling rose sharply to 35.4 per cent in 2025, up from 30.1 per cent the previous year. In absolute terms, ship recycling volumes in the country climbed to 2.99 million gross tons, representing an increase of nearly 60 per cent from 1.86 million gross tons in 2024. The surge places India firmly ahead of other major ship recycling nations and reflects a combination of policy reforms, industry adaptation and growing global demand for responsible dismantling practices.
The rise has been driven in large part by regulatory and institutional measures introduced over the past few years. Central to this transformation is the Recycling of Ships Act, 2019, which aligns India’s domestic framework with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. India ratified the convention in 2019, signalling its intent to bring environmental and safety standards in line with global expectations.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the country’s emergence as the top ship recycling nation reflects the cumulative impact of sustained reforms and industry participation. He noted that adherence to international standards and a focus on sustainability have been central to India’s rise, positioning it as a global hub for responsible ship recycling.
Financial incentives have also played a key role in modernising the sector. The government has extended assistance amounting to ₹53.5 crore to upgrade ship recycling yards, enabling 115 facilities to become compliant with the Hong Kong Convention. This push has improved both environmental safeguards and worker safety conditions, areas that have historically drawn scrutiny in the ship-breaking industry.
Another policy instrument, the Ship-breaking Credit Note Scheme, has sought to integrate ship recycling with domestic shipbuilding. Under the scheme, ship owners receive a credit note equivalent to 40 per cent of the scrap value of a recycled vessel, which can then be used to offset up to 5 per cent of the cost of building a new ship in India. The initiative is designed to create a circular ecosystem linking dismantling and construction within the maritime sector.
India’s ship recycling industry is heavily concentrated at the Alang yard in Gujarat, one of the largest ship-breaking facilities in the world. Authorities are now planning a significant expansion of capacity, with a target to nearly double output to around 9 million light displacement tons. The Gujarat government has prepared a comprehensive master plan to upgrade infrastructure, improve efficiency and accommodate future demand.
The global outlook for ship recycling further strengthens India’s position. According to the Baltic and International Maritime Council, more than 16,000 vessels are expected to be recycled worldwide over the next decade. With its current market share, India is projected to handle approximately 500 to 600 ships annually, provided capacity expansion keeps pace with demand.
At the same time, the government is working to secure greater international recognition for its facilities. Efforts are underway to include Indian yards in the European Union’s list of approved ship recycling facilities, a move that would open access to a larger segment of the global market and further validate India’s compliance with stringent environmental standards.
Industry stakeholders have also played a role in the sector’s growth, with regular consultations between the Ministry of Ports, Shipping and Waterways and bodies such as the Gujarat Maritime Board, the Ship Recycling Industries Association and international shipping firms. These engagements have focused on identifying operational challenges and implementing targeted solutions to enhance competitiveness.
India’s ascent to the top of the global ship recycling rankings reflects a broader shift towards sustainability and regulation in the maritime sector. As older vessels are retired in increasing numbers, driven by environmental norms and fleet modernisation, the demand for compliant recycling facilities is expected to grow.
