India Becomes World’s Top Ship Recycling Nation in 2025, Achieves Vision 2030 Target Five Years Ahead of Schedule

India emerged as the global leader in ship recycling in 2025, growing its market share to 35.4% from 30.1% in 2024, according to a United Nations Conference on Trade and Development (UNCTAD) report cited by the shipping ministry. The country processed 2.99 million gross tons (GT) during the year, marking a nearly 60% increase from 1.86 million GT in 2024.

With this, the ministry said, India has achieved its Maritime India Vision (MIV) 2030 goal of becoming the top global ship recycling nation well ahead of schedule. The achievement reflects the impact of maritime policy reforms and the government’s ease-of-doing-business initiatives, it added.

"India's emergence as the world's top ship recycling nation reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards. It reinforces India's position as a global hub for responsible and sustainable ship recycling,” said ports and shipping minister Sarbananda Sonowal.

India enacted the Recycling of Ships Act, 2019 to develop a ship recycling ecosystem aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which the country ratified in 2019.

The government has also provided financial assistance of ₹53.5 crore to support the modernization of ship recycling yards, helping 115 facilities become HKC-compliant.

In addition, the shipping ministry has launched the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equivalent to 40% of the scrap value of a recycled ship. The credit note can be used to pay for up to 5% of the value of a new vessel built at an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding. The government is also actively pursuing the inclusion of Indian ship recycling yards in the European Union's approved list of recycling facilities.

India aims to nearly double its ship recycling capacity to about 9 million light displacement tons (LDT) by expanding the Alang Ship Recycling Yard. The government of Gujarat has prepared a comprehensive master plan to support future demand, improve infrastructure and enhance India's competitiveness in the global market.

According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled worldwide over the next decade. With a current market share of 35.4%, India is well-positioned to recycle 500 to 600 vessels annually while continuing to expand its ship recycling capacity.

“India's rise to the top position in global ship recycling is the result of a coordinated strategy focused on sustainability, regulatory reforms, infrastructure development and industry collaboration. With strong future demand, increasing compliance with international standards and continued government support, India is well-positioned to strengthen its leadership in ship recycling while advancing the objectives of the circular economy and sustainable maritime development,” the ministry’s statement read.

Subhash is the infrastructure editor at Mint and tracks the momentous developments taking place in the space that is fast changing the Indian landscape. He finds reporting to be a passion that provides the necessary adrenaline rush and keeps you going.

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