India’s ship recycling sector expanded to 2.99 million gross tonnes (GT) in 2025, nearly 60 per cent higher than 1.86 million GT in 2024, achieving the Maritime India Vision 2030 target of global leadership well ahead of schedule.
India has emerged as the world’s leading ship recycling nation in 2025, ranking first globally, according to the United Nations Conference on Trade and Development (UNCTAD). The country’s share of global ship recycling rose to 35.4 per cent in 2025 from 30.1 per cent in 2024.
The ship recycling sector expanded significantly to 2.99 million gross tonnes (GT) in 2025, up nearly 60 per cent from 1.86 million GT in 2024. With this achievement, the target set under Maritime India Vision (MIV) 2030 to become the world’s leading ship recycling nation has been met well ahead of schedule.
Reacting to the UNCTAD data, Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal said, “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 under the visionary leadership of Prime Minister Narendra Modi. It reinforces India’s position as a global hub for responsible and sustainable ship recycling.”
India already hosts the world’s largest shipbreaking yard at Alang in Gujarat, which currently recycles around 250-300 vessels annually, accounting for nearly 90-95 per cent of India’s ship recycling activity. Capacity expansion plans under Maritime India Vision 2030 aim to raise throughput to 500-600 vessels annually in the coming years.
Government Policy Push
To strengthen India’s ship recycling ecosystem and capture a larger share of the global market, the Ministry of Ports, Shipping and Waterways has launched a series of initiatives. The Recycling of Ships Act, 2019, was enacted to align India’s framework with the Hong Kong International Convention (HKC), which India ratified in 2019.
Financial assistance of ₹535 million has been provided to modernise ship recycling yards, enabling 115 facilities to become HKC‑compliant. The ministry also introduced the Ship‑breaking Credit Note Scheme, under which ship owners receive a credit note equivalent to 40 per cent of the scrap value of a recycled ship. This can be utilised toward payment of up to 5 per cent of the value of a new vessel built at an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding.
The ministry continues to engage with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies and international organisations to identify challenges and implement targeted solutions. India is also actively pursuing the inclusion of its ship recycling yards in the EU’s approved list of facilities, with continuous engagement underway to secure approvals.
India aims to nearly double its ship recycling capacity to about 9 million light displacement tonnes (LDT) through the planned expansion of the Alang yard. According to Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled globally over the next decade.