India has emerged as the world's leading ship recycling nation in 2025, achieving the top global ranking with a 35.4% share of global ship recycling, according to the latest UNCTAD report. This represents a significant increase from 30.1% in 2024. The actual volume of ship recycling in India rose to 2.99 million gross tons (GT) in 2025, marking a nearly 60% increase from 1.86 million GT in the previous year.
This achievement means India has met its Maritime India Vision 2030 target of becoming the world's leading ship recycling nation five years ahead of schedule. Union Minister Sarbananda Sonowal attributed this success to sustained policy reforms, industry efforts, and adherence to international environmental and safety standards under Prime Minister Narendra Modi's leadership.
The Ministry of Ports, Shipping and Waterways has implemented several key initiatives to strengthen India's ship recycling ecosystem. The government enacted the Recycling of Ships Act, 2019 to align with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019. Financial assistance of ₹53.5 crore has been provided to support modernization of ship recycling yards, helping 115 facilities become HKC-compliant.
The Ship-breaking Credit Note Scheme allows ship owners to receive a credit note equivalent to 40% of the scrap value of a recycled ship, which can be utilized toward payment of up to 5% of the value of a new vessel built at an Indian shipyard. The ministry regularly engages with the Gujarat Maritime Board, Ship Recycling Industries Association, global shipping companies, and international organizations to address challenges.
India is actively pursuing inclusion of its ship recycling yards in the European Union's approved list of recycling facilities through continuous engagement with relevant authorities. The planned expansion of the Alang Ship Recycling Yard aims to nearly double India's capacity to about 9 million light displacement tons (LDT), with the Government of Gujarat preparing a comprehensive master plan to support future demand and improve infrastructure.
According to BIMCO projections, more than 16,000 vessels are expected to be recycled globally over the next decade. With its current market share of 35.4%, India is positioned to recycle approximately 500 to 600 vessels annually while continuing to expand its capacity. This achievement reflects India's coordinated strategy focusing on sustainability, regulatory reforms, infrastructure development, and industry collaboration.