India has emerged as the world’s leading ship recycling nation in 2025, achieving a key milestone five years ahead of the target set under the Maritime India Vision 2030. According to the latest report of the United Nations Conference on Trade and Development (UNCTAD), India’s share in global ship recycling increased to 35.4 per cent in 2025 from 30.1 per cent in the previous year.
The report showed that the country recycled 2.99 million gross tons of ships in 2025, compared with 1.86 million gross tons in 2024, registering a growth of nearly 60 per cent and strengthening its position in the global maritime sector.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the achievement reflected the success of sustained policy reforms, active industry participation and strict adherence to international safety and environmental standards. He said India’s rise as the leading ship recycling destination reinforced its role in promoting responsible and sustainable maritime practices.
To support the sector, the government enacted the Recycling of Ships Act, 2019, following the country’s ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Financial assistance amounting to ₹53.5 crore has been extended for modernising ship recycling facilities, enabling 115 yards to comply with international standards.
The Ministry of Ports, Shipping and Waterways has also introduced the Ship-breaking Credit Note Scheme, under which ship owners receive credit equivalent to 40 per cent of a vessel’s scrap value. The credit can be utilised to meet up to 5 per cent of the cost of a new vessel constructed at an Indian shipyard, thereby encouraging both recycling and domestic shipbuilding.
The government is also engaging with stakeholders to facilitate the inclusion of Indian recycling yards under the European Union Ship Recycling Regulations, a step expected to enhance access to international markets.
India is planning to nearly double its ship recycling capacity through the expansion of the Alang Ship Recycling Yard in Gujarat. With industry estimates by BIMCO indicating that more than 16,000 vessels will require recycling worldwide over the next decade, the country is expected to retain its leadership position while advancing sustainable maritime development and circular economy objectives.
