India has strengthened its position as the world’s leading ship recycling hub, with its global share rising to 35.4% in 2025, according to data cited by the Ministry of Ports, Shipping and Waterways based on a United Nations Conference on Trade and Development (UNCTAD) report.
Sharp Rise in Recycling Volumes Boosts India’s Position
India’s ship recycling activity reached 2.99 million gross tonnes (GT) in 2025, marking a sharp increase of nearly 60% compared to 1.86 million GT in the previous year. The government said this growth reflects the combined impact of regulatory reforms, infrastructure upgrades, and improved ease of doing business in the maritime sector.
With this performance, India has officially become the top global ship recycling destination, achieving a target set under the Maritime India Vision 2030 well ahead of schedule.
Policy Reforms and Modernisation Drive Growth
Officials highlighted that sustained policy interventions have played a key role in strengthening the sector. India ratified the Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships in 2019, followed by the enactment of the Recycling of Ships Act the same year, aligning domestic practices with global environmental standards.
The government has also supported the modernisation of recycling infrastructure, providing financial assistance of ₹53.5 crore to upgrade ship recycling yards. As a result, around 115 facilities have been brought in line with international compliance standards, improving safety and environmental performance.
Incentives Designed to Strengthen Industry Ecosystem
To further boost competitiveness, the government introduced the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note worth 40% of a vessel’s scrap value. This credit can be used for purchasing new ships built in Indian shipyards, with up to 5% of the vessel’s cost offset, encouraging domestic shipbuilding alongside recycling.
Experts note that such integrated incentives are helping India build a more self-sustaining maritime ecosystem, linking recycling, manufacturing, and fleet expansion within a single policy framework.
Long-Term Expansion Plans Underway
According to industry estimates, more than 16,000 vessels globally are expected to be recycled over the next decade, presenting a significant opportunity for India’s ship recycling industry. With its current market share, India is positioned to handle 500 to 600 vessels annually in the coming years.
The government is also working to nearly double the country’s recycling capacity to around 9 million light displacement tonnes (LDT), primarily through the expansion of the Alang Ship Recycling Yard in Gujarat. A state-level master plan has been prepared to enhance infrastructure, improve operational efficiency, and strengthen India’s global competitiveness.
Sustainable Maritime Growth Strategy
Officials said the sector’s progress reflects India’s broader push toward sustainable maritime development and Atmanirbhar Bharat goals. By combining environmental compliance with industrial growth, India is aiming to consolidate its leadership in the global ship recycling market while supporting domestic shipbuilding and employment generation.
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