India Becomes the World's Largest Ship Recycling Nation Five Years Before the 2030 Target
India Becomes the World's Largest Ship Recycling Nation Five Years Before the 2030 Target
24/06/2026
Shipping, Maritime & Ports
The Ministry of Ports, Shipping and Waterways states that a recent UNCTAD report shows that India's share of the worldwide ship recycling market grew from 30.1% in 2024 to 35.4% in 2025, making it the industry leader.
With this accomplishment, India has achieved its Maritime India Vision 2030 goal of becoming the world's leading ship recycling nation five years ahead of schedule.
In 2025, India recycled 2.99 million gross tonnes (GT) of ships, marking a nearly 60% increase from 1.86 million GT in 2024, driven by various maritime policy changes and initiatives aimed at promoting industry commerce.
India Takes the Lead in Ship Recycling Worldwide
The milestone coincides with an anticipated global increase in ship recycling demand. Over 16,000 ships are anticipated to be recycled during the next ten years, according to the Baltic and International Maritime Council (BIMCO).
India could recycle between 500 and 600 ships annually while increasing its capacity, given its 35.4% market share.
According to Sarbananda Sonowal, Union Minister of Ports, Shipping, and Waterways, India's rise to the top of the global ship recycling rankings is a result of years of industry efforts, policy changes, and adherence to international safety and environmental regulations.
The accomplishment, he continued, enhances India's standing as a worldwide centre for ethical and sustainable ship recycling.
India Upgrades Ship Recycling Regulations
The Recycling of Ships Act, 2019, which India ratified in 2019, brought the country's ship recycling sector into compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
Additionally, the government has contributed ₹53.5 crore to modernise ship recycling yards, assisting 115 facilities in meeting the requirements of the Hong Kong Convention.
Besides that, the ministry introduced the Ship-breaking Credit Note Programme. A credit note equal to 40% of the scrap value of a recycled vessel is given to shipowners under the programme.
India Increases Ship Recycling Capability
The credit encourages both ship recycling and domestic shipbuilding by covering up to 5% of the cost of a new vessel constructed at an Indian shipyard.
Meanwhile, India is attempting to have its ship recycling yards added to the list of facilities authorised by the European Union.
The government intends to almost double the Alang Ship Recycling Yard's capacity to approximately 9 million light displacement tonnes (LDT) in order to prepare for future demand.
A master plan to enhance infrastructure and boost India's competitiveness in the international ship recycling market has also been prepared by the Gujarat government.
Eventually, the government anticipates continued investment, increased recycling capacity, and internationally compliant facilities to help India maintain its position as the world's top ship recycling nation as thousands of ships are anticipated to be retired over the next ten years.
