Vessels at the Strait of Hormuz, as seen from Musandam, Oman, June 18, 2026. REUTERS/Stringer TPX IMAGES OF THE DAY
NEW DELHI, June 22 — India has emerged as the world’s top ship recycling nation in 2025, achieving a key target under the Maritime India Vision 2030 well ahead of schedule, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD).
India’s share of global ship recycling increased to 35.4 percent in 2025, up from 30.1 percent in 2024. The country recycled 2.99 million gross tons (GT) of shipping capacity during the year, representing an increase of nearly 60 percent from 1.86 million GT in 2024.
The achievement marks a significant milestone for India’s maritime sector and reflects the impact of policy reforms and ease-of-doing-business initiatives introduced by the government.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said India’s rise to the top position demonstrates the success of sustained reforms and adherence to international environmental and safety standards.
“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,” Sonowal said.
The government enacted the Recycling of Ships Act, 2019, to develop a ship recycling ecosystem aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019.
To modernize the industry, the government has provided financial assistance totaling ₹535 million to support ship recycling yards. The initiative has helped 115 facilities achieve compliance with international standards under the Hong Kong Convention.
The Ministry of Ports, Shipping and Waterways also launched the Ship-breaking Credit Note Scheme, which provides ship owners with a credit note equivalent to 40 percent of the scrap value of a recycled vessel. The credit can be used toward up to 5 percent of the value of a new ship built at an Indian shipyard, encouraging both recycling and domestic shipbuilding.
The ministry has continued to engage with the Gujarat Maritime Board, the Ship Recycling Industries Association, international shipping companies, classification societies, and global organizations to address industry challenges and implement targeted reforms.
India is also pursuing inclusion of its ship recycling facilities on the European Union’s approved list of recycling yards. Government officials said discussions with relevant authorities are ongoing.
Looking ahead, India plans to nearly double its ship recycling capacity to approximately 9 million light displacement tons (LDT) through the expansion of the Alang Ship Recycling Yard in Gujarat. State authorities have prepared a comprehensive master plan aimed at improving infrastructure and supporting future industry growth.
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled worldwide over the next decade. With its current global market share, India is positioned to recycle an estimated 500 to 600 vessels annually while continuing to expand capacity.
Officials said India’s rise to the top of the global ship recycling industry has been driven by a coordinated strategy focused on sustainability, regulatory reform, infrastructure development, and industry collaboration.
With growing international demand, increasing compliance with global standards, and continued government support, India is expected to further strengthen its leadership in ship recycling while advancing circular economy goals and sustainable maritime development.
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