India has become the world’s largest ship recycling nation in 2025, achieving a major milestone under the Maritime India Vision (MIV) 2030 five years ahead of schedule, according to the latest UNCTAD report. The achievement highlights India’s growing leadership in sustainable maritime services and reinforces its position as a global hub for environmentally responsible ship recycling.
India’s share of the global ship recycling market increased from 30.1% in 2024 to 35.4% in 2025, while ship recycling volumes surged nearly 60%, rising from 1.86 million gross tons (GT) to 2.99 million GT.
Government Reforms Drive Industry Growth
The rapid growth of India’s ship recycling industry has been supported by key policy reforms, including the Recycling of Ships Act, 2019, which aligns the country’s regulatory framework with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
To modernize the sector, the government has provided Rs. 53.50 crore (US$6.05 million) in financial assistance, enabling 115 ship recycling yards to become HKC-compliant and meet international environmental and safety standards.
Incentives Boost Ship Recycling and Domestic Shipbuilding
The Government has also introduced the
Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equal to 40% of a recycled vessel’s scrap value. The credit can be used to pay up to 5% of the cost of a new vessel built at an Indian shipyard, encouraging both sustainable ship recycling and domestic shipbuilding.
India Expands Capacity to Meet Future Global Demand
India plans to nearly double its ship recycling capacity to approximately 9 million light displacement tons (LDT) through the expansion of the Alang Ship Recycling Yard in Gujarat.
According to industry estimates, more than 16,000 ships are expected to be recycled worldwide over the next decade. With its current market leadership, India is well-positioned to recycle 500–600 vessels annually, further strengthening its role in the global maritime industry.
Key Highlights:
- India became the world's largest ship recycling nation in 2025.
- The country achieved its Maritime India Vision 2030 target five years ahead of schedule.
- India's global ship recycling market share increased from 30.1% to 35.4%.
- Ship recycling volume grew nearly 60%, reaching 2.99 million gross tons (GT).
- The Recycling of Ships Act, 2019 aligns India with international HKC standards.
- The government provided Rs. 53.50 crore to modernize 115 HKC-compliant ship recycling yards.
- The Ship-breaking Credit Note Scheme supports both ship recycling and domestic shipbuilding.
- India plans to expand ship recycling capacity to 9 million LDT through the Alang Ship Recycling Yard.
- More than 16,000 vessels are expected to be recycled globally over the next decade.
- India could recycle 500–600 ships annually, strengthening its position as a global maritime and ship recycling hub.
