India has become the world’s largest ship recycling nation, reaching a key Maritime India Vision 2030 target five years early.
According to the Ministry of Ports, Shipping and Waterways, India increased its global ship recycling market share to 35.4% in 2025, up from 30.1% in 2024. The ministry cited the latest report by the United Nations Conference on Trade and Development.
India recycled 3.0 million gross tonnes (GT) of ships in 2025, compared with 1.9 million GT in 2024. The ministry said the increase followed maritime policy reforms and measures to improve business conditions in the sector.
The milestone comes as global ship recycling demand is expected to rise. The Baltic and International Maritime Council (BIMCO) estimates that more than 16,000 ships will be recycled over the next decade.
Based on its current market share, India could recycle around 500 to 600 ships each year while expanding national capacity.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said India’s position reflects policy reforms, industry efforts and compliance with international environmental and safety standards.
The government introduced the Recycling of Ships Act, 2019, aligning India’s ship recycling sector with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. India ratified the convention in 2019.
The government has also provided ₹53.5 crore to modernize ship recycling yards, helping 115 facilities meet Hong Kong Convention standards.
India has launched the Ship-breaking Credit Note Scheme. Under the scheme, shipowners receive a credit note worth 40% of the scrap value of a recycled vessel.
The credit can be used to cover up to 5% of the cost of a new vessel built at an Indian shipyard, supporting both ship recycling and domestic shipbuilding.
India is also working to have its ship recycling yards included in the European Union’s approved list of recycling facilities.
To prepare for future demand, the government plans to nearly double the capacity of the Alang Ship Recycling Yard to about 9.0 million light displacement tonnes.
The Gujarat government has prepared a master plan to improve infrastructure and strengthen India’s competitiveness in global ship recycling.
With thousands of vessels expected to retire over the next decade, India expects investment, capacity growth and internationally compliant yards to support its leading position.
