India Crowned as Global Leader in Ship Recycling for 2025
India has achieved a remarkable milestone by becoming the world’s leading ship recycling nation in 2025. The nation’s share of global ship recycling rose to an impressive 35.4%, up from 30.1% in 2024, according to a recent report by the United Nations Conference on Trade and Development (UNCTAD). India’s ship recycling volume surged to 2.99 million gross tons (GT) in 2025, representing a nearly 60% increase from 1.86 million GT in the prior year. This accomplishment demonstrates India’s commitment to its Maritime India Vision (MIV) 2030 objectives, reaching the target well ahead of schedule.
Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, remarked on this achievement, stating, “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. This reinforces India’s position as a global hub for responsible and sustainable ship recycling.”
Government Initiatives Boosting Ship Recycling
The Government of India has taken several strategic steps to bolster the country’s ship recycling ecosystem and capture a larger share of the international market. Significant initiatives include:
- Hong Kong Convention Compliance: India enacted the Recycling of Ships Act in 2019 to align its ship recycling practices with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in the same year. Financial support of ₹53.5 crore has been allocated to modernize ship recycling facilities to ensure compliance.
- Ship-breaking Credit Note Scheme: The MoPSW launched this scheme to incentivize ship owners by providing them with a credit note equal to 40% of the scrap value of recycled ships. This allows them to use the credit toward the payment of up to 5% of a new vessel’s construction value at an Indian shipyard.
- Stakeholder Engagement: Regular interactions with various stakeholders, including the Gujarat Maritime Board and global shipping companies, are conducted to address challenges and implement effective solutions.
- Inclusion Under EU Regulations: The Indian government is actively working towards incorporating Indian ship recycling yards into the European Union’s approved list of recycling facilities.
- Expansion of Alang Ship Recycling Yard: Plans to nearly double the recycling capacity to about 9 million light displacement tons (LDT) are in place, supported by a master plan to enhance infrastructure and competitiveness.
Promising Future Ahead
Looking forward, the Baltic and International Maritime Council (BIMCO) projects that over 16,000 vessels will be recycled worldwide in the coming decade. With India’s current market share of 35.4%, the country is well-positioned to recycle approximately 500 to 600 vessels annually, while continuing to expand its ship recycling capacity.
India’s rise to the forefront of global ship recycling stems from a comprehensive strategy focused on sustainability, regulatory reforms, infrastructural enhancements, and collaboration within the industry. With sustained demand and adherence to international standards, India is set to solidify its leadership role in ship recycling, furthering the goals of sustainable maritime development and the circular economy.
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