India has solidified its position as the leading nation in ship recycling, achieving a global market share of 35.4% in 2025, up from 30.1% in 2024, as reported by the United Nations Conference on Trade and Development (UNCTAD). The country’s ship recycling volume surged to 2.99 million gross tons (GT), marking a nearly 60% increase from the previous year’s 1.86 million GT. This milestone was reached ahead of the Maritime India Vision (MIV) 2030 target, showcasing the effectiveness of the government’s maritime policy reforms and business-friendly initiatives.
Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, emphasized that this achievement reflects the successful implementation of policy reforms, industry collaboration, and adherence to international environmental standards under Prime Minister Narendra Modi’s leadership. To bolster its ship recycling ecosystem, the Ministry has enacted the Recycling of Ships Act, 2019, and provided financial support to modernize ship recycling yards, enabling compliance with the Hong Kong International Convention.
Further initiatives include the Ship-breaking Credit Note Scheme, which incentivizes ship owners by offering a credit note equivalent to 40% of a recycled ship’s scrap value. This credit can be applied toward new vessel construction at Indian shipyards, promoting both recycling and domestic shipbuilding. With plans to expand the Alang Ship Recycling Yard and a master plan from the Gujarat government to enhance infrastructure, India aims to nearly double its ship recycling capacity to about 9 million light displacement tons (LDT).
Looking ahead, India is positioned to recycle approximately 500 to 600 vessels annually, thanks to strong future demand and ongoing compliance with international standards. The government is actively working to include Indian ship recycling yards in the European Union’s approved list of facilities, further solidifying India’s leadership in sustainable ship recycling and contributing to the circular economy.
Share it now
