India Becomes World’s Largest Ship Recycling Nation Five Years Ahead Of 2030 Target
India has become the world’s leading ship recycling nation after increasing its share of the global market to 35.4% in 2025 from 30.1% in 2024, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD), the Ministry of Ports, Shipping and Waterways (MoPSW) said on Monday.
The achievement means India has reached its Maritime India Vision 2030 goal of becoming the world’s top ship recycling nation five years ahead of schedule.
India recycled 2.99 million gross tonnes (GT) of ships in 2025, up nearly 60% from 1.86 million GT in 2024, the ministry said. It credited the growth to a series of maritime policy reforms and measures aimed at making it easier to do business in the sector.
The milestone comes as demand for ship recycling is expected to rise globally. According to the Baltic and International Maritime Council (BIMCO), more than 16,000 ships are expected to be recycled over the next decade.
With a 35.4% share of the global market, India could recycle around 500 to 600 ships every year while continuing to expand its capacity.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said India’s emergence as the world’s top ship recycling nation reflects years of policy reforms, industry efforts and compliance with international environmental and safety standards.
He added that the achievement strengthens India’s position as a global hub for responsible and sustainable ship recycling.
To strengthen the sector, the government introduced the Recycling of Ships Act, 2019, bringing India’s ship recycling industry in line 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 ₹53.5 crore to modernise ship recycling yards, helping 115 facilities meet Hong Kong Convention standards.
The ministry also launched the Ship-breaking Credit Note Scheme. Under the scheme, ship owners receive a credit note worth 40% of the scrap value of a recycled vessel.
The credit can be used to pay up to 5% of the cost of a new vessel built at an Indian shipyard, encouraging both ship recycling and domestic shipbuilding.
India is also working to get its ship recycling yards included in the European Union’s approved list of ship recycling facilities.
To prepare for future demand, the government plans to nearly double the capacity of the Alang Ship Recycling Yard to about 9 million light displacement tonnes (LDT).
The Gujarat government has also prepared a master plan to improve infrastructure and increase India’s competitiveness in the global ship recycling market.
With thousands of ships expected to be retired over the next 10 years, the government expects continued investment, higher recycling capacity and internationally compliant facilities to help India maintain its position as the world’s leading ship recycling nation.
