The Maritime Shipping Bill in India is expected to boost the country’s ship recycling industry, potentially surpassing Bangladesh as the top player in the sector. The proposed reforms in the Merchant Shipping Bill aim to simplify vessel registration, attract investment, and enhance operational clarity in ship recycling. Additionally, the Bill mandates certifications for seafarers that meet international standards and includes welfare measures to improve safety and competitiveness, according to Ajay Srivastava, founder of GTRI.
According to CareEdge, India’s ship recycling industry is projected to grow significantly by 2025, reaching 3.8-4.2 million gross tonnage. India currently accounts for 33% of the global gross tonnage dismantled, trailing behind Bangladesh at 37%. However, Bangladesh has experienced weaknesses in the sector due to internal political disturbances, potentially opening up opportunities for India to attract more global vessels and increase its market share in the coming years.
The ship recycling industry in India is forecasted to grow at a compound annual growth rate of around 10% from CY26-CY28. The stabilization of heavy melting scrap prices and an increase in obsolete ships in operations suggest a growing number of vessels entering the recycling market from CY25 onwards. To remain competitive, India will need to improve its infrastructure, implement green recycling facilities, secure Euro certification, and ensure compliance to attract more global vessels, as recommended by Sajani Shah, Assistant Director at CareEdge.
More Stories
India’s Key Maritime Bills to Transform Shipping and Coastal Trade
Germany’s Mosel River Closed for Lock Repairs
RMT Supports Employment Rights Bill Amendments to Protect Seafarers