India has emerged as the world's leading ship recycling nation in 2025, achieving a 35.4% global market share according to the latest report by the United Nations Conference on Trade and Development (UNCTAD). As confirmed by the Ministry of Ports, Shipping and Waterways, this represents a significant increase from India's 30.1% share recorded in 2024, marking a substantial leap in the country's dominance of the global ship recycling industry. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal emphasized that India's emergence as the global leader demonstrates the success of sustained reforms, industry participation and adherence to international environmental and safety standards under the visionary leadership of Prime Minister Narendra Modi. The ministry emphasized that this achievement reflects the impact of maritime policy reforms and ease-of-doing-business initiatives undertaken by the government, with Sonowal noting that "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."
India's ship recycling activity demonstrated remarkable growth in 2025, with volumes rising to 2.99 million gross tons (GT) compared to 1.86 million GT in 2024. This represents a nearly 60% increase in recycling volumes year-over-year, highlighting the country's expanding capacity and market presence in the global ship recycling sector. The ministry noted that with this achievement, India has successfully achieved the target set under the Maritime India Vision (MIV) 2030 to become the world's leading ship recycling nation, achieving the milestone well ahead of schedule. With a current 35.4% market share, India is positioned to recycle an estimated 500-600 vessels annually while continuing to expand its ship recycling capacity. According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled globally over the next decade, positioning India strategically for sustained growth in this sector.
The ministry has undertaken comprehensive initiatives to strengthen India's ship recycling ecosystem and capture a larger share of the global market. Key measures include compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019, and the enactment of the Recycling of Ships Act, 2019. The government has provided ₹53.5 crore financial assistance to support the modernisation of ship recycling yards, helping 115 facilities become HKC-compliant. Additionally, the ministry 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, which can be utilized towards payment of up to 5% of the value of a new vessel built at an Indian shipyard, supporting both ship recycling and domestic shipbuilding initiatives. The ministry has also been engaging regularly with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping firms, cash buyers, classification societies and international organisations to identify bottlenecks and implement targeted reforms. The government is also pursuing inclusion of Indian ship recycling facilities in the European Union's approved list of recycling yards and continuing engagement with relevant authorities to secure approvals.
With India's current 35.4% market share, the country is well positioned to recycle 500 to 600 vessels annually while continuing to expand its ship recycling capacity. The Gujarat government has prepared a master plan to support future demand, improve infrastructure and enhance competitiveness in the global market. Looking ahead, India plans to nearly double its ship recycling capacity to about 9 million light displacement tonnes (LDT) through the planned expansion of the Alang Ship Recycling Yard. The ministry has also introduced the Ship-breaking Credit Note Scheme under which ship owners receive credit notes equivalent to 40% of the scrap value of recycled vessels, with these credits designed to offset up to 5% of the value of a new vessel built at an Indian shipyard, supporting both ship recycling and domestic shipbuilding initiatives. 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.
