New Delhi: India has emerged as the world’s leading ship recycling nation in 2025, achieving a major milestone under the Maritime India Vision 2030 programme five years ahead of schedule.
According to the latest UNCTAD report, India’s share of global ship recycling increased to 35.4 percent in 2025 from 30.1 percent in 2024. Moreover, ship recycling volume rose to 2.99 million gross tons from 1.86 million gross tons during the same period.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the achievement reflected the success of policy reforms, industry efforts and adherence to international environmental and safety standards under Prime Minister Narendra Modi’s leadership.
The minister stated that India’s rise to the top position reinforced its status as a global hub for responsible and sustainable ship recycling. Furthermore, he said the achievement highlighted the impact of maritime reforms and ease-of-doing-business initiatives.
The Ministry of Ports, Shipping and Waterways has introduced several measures to strengthen the sector. These include the Recycling of Ships Act, 2019, which aligns India’s ship recycling ecosystem with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Ship recycling nation target achieved ahead of schedule
The government has provided ₹53.5 crore in financial assistance to modernise ship recycling yards. As a result, 115 facilities have become compliant with Hong Kong Convention standards.
In addition, the ministry launched the Ship-breaking Credit Note Scheme. Under the programme, ship owners receive a credit note worth 40 percent of a vessel’s scrap value. They can then use the credit note to support the construction of new vessels at Indian shipyards.
The government is also pursuing the inclusion of Indian facilities under European Union Ship Recycling Regulations. Meanwhile, authorities plan to expand the Alang Ship Recycling Yard to nearly double India’s recycling capacity to around 9 million light displacement tons.
According to the Baltic and International Maritime Council, more than 16,000 vessels are likely to undergo recycling worldwide over the next decade. Therefore, India is well-positioned to handle about 500 to 600 vessels annually while further expanding capacity.
Officials said India’s leadership in ship recycling stems from a coordinated strategy focused on sustainability, regulatory reforms, infrastructure development and industry collaboration. Consequently, the country is expected to strengthen its position while advancing circular economy goals and sustainable maritime development.
