**Executive Summary**
In 2025, India emerged as the world's leading ship recycling nation with a 35.4% global market share, achieving its Maritime India Vision 2030 targets five years ahead of schedule. Under the Ministry of Ports, Shipping and Waterways (MoPSW), the sector saw a 60% increase in recycled tonnage and the modernization of 115 facilities to meet international standards. Key upcoming objectives include doubling the capacity of the Alang Ship Recycling Yard and securing inclusion under European Union ship recycling regulations.
**Key Points / Main Content**
**Market Performance and Growth**
* India’s global share of ship recycling rose from 30.1% in 2024 to 35.4% in 2025.
* Recycling volume increased from 1.86 million gross tons (GT) in 2024 to 2.99 million GT in 2025.
* India is currently positioned to recycle approximately 500 to 600 vessels annually.
**Regulatory Compliance and Modernization**
* Enactment of the Recycling of Ships Act, 2019, aligned the domestic industry with the Hong Kong International Convention (HKC).
* The government provided ₹53.5 crore in financial assistance to modernize recycling yards.
* Currently, 115 ship recycling facilities in India are HKC-compliant.
**Financial Incentives**
* The Ship-breaking Credit Note Scheme provides ship owners a credit worth 40% of a recycled ship's scrap value.
* These credit notes can be used to offset up to 5% of the cost of a new vessel built at an Indian shipyard.
**Infrastructure Expansion and Future Strategy**
* Plans are underway to double India's recycling capacity to 9 million light displacement tons (LDT) through the expansion of the Alang Ship Recycling Yard.
* The Government of Gujarat has developed a master plan to enhance infrastructure and global competitiveness.
* India is actively engaging with authorities for inclusion in the European Union Ship Recycling Regulations (EUSRR) approved list of facilities.
**Impact Analysis**
**Stakeholder: Ship Owners**
**Impact**
Owners gain significant financial benefits through the Ship-breaking Credit Note Scheme, which incentivizes both recycling and new ship construction within India.
**Action Required**
Owners must recycle vessels at Indian yards to receive credit notes and utilize them for payments toward new vessels built at domestic shipyards.
**Stakeholder: Ship Recycling Facility Operators**
**Impact**
Facilities benefit from government modernization grants and increased global demand as India establishes itself as a hub for sustainable recycling.
**Action Required**
Operators must ensure continued adherence to international environmental and safety standards and maintain HKC compliance to attract global shipping companies.
**Stakeholder: Government of Gujarat / Gujarat Maritime Board**
**Impact**
Responsible for the physical expansion of the industry’s primary hub and the implementation of large-scale infrastructure improvements.
**Action Required**
Execute the comprehensive master plan for the Alang Ship Recycling Yard to nearly double current capacity and support future demand.
**Stakeholder: Ministry of Ports, Shipping and Waterways (MoPSW)**
**Impact**
The Ministry leads policy reforms, stakeholder engagement, and international negotiations to maintain India's top ranking.
**Action Required**
Continue pursuing the inclusion of Indian yards in the EUSRR list and facilitate ongoing engagement with global shipping organizations and classification societies.
Key Entities Referenced
Maritime India Vision (MIV) 2030: The strategic roadmap for India's maritime sector which set the target for India to become the world's leading ship recycling nation.
Recycling of Ships Act, 2019: The primary legislation enacted to create a ship recycling ecosystem aligned with international safety and environmental standards.
Ministry of Ports, Shipping and Waterways (MoPSW): The nodal ministry responsible for maritime policy reforms, ease-of-doing-business initiatives, and overseeing the ship recycling industry.
Ship-breaking Credit Note Scheme: A government initiative providing ship owners a credit note worth 40% of scrap value to be used for building new vessels at Indian shipyards.
Alang Ship Recycling Yard: India's central ship recycling hub undergoing expansion to double its capacity to 9 million light displacement tons.
Ministry of Ports, Shipping and Waterways
India Becomes World’s Top Ship Recycling
Nation in 2025
India's Ship Recycling Share Jumps to 35.4% in 2025,
Highest in the World as per UNCTAD
India Achieves Maritime India Vision 2030 Ship Recycling
Target Five Years Ahead of Schedule
PM Modi’s Maritime Reforms Make India No.1 in Global Ship
Recycling: Sarbananda Sonowal
प्रव तथ: 22 JUN 2026 5:54PM by PIB Delhi
India has emerged as the world's leading ship recycling nation in 2025, ranking first globally. India's share
of global ship recycling increased to 35.4% in 2025 from 30.1% in 2024, according to the latest report by
the United Nations Conference on Trade and Development (UNCTAD). Ship recycling in India rose
significantly to 2.99 million gross tons (GT) in 2025, up nearly 60% from 1.86 million GT in 2024. With
this achievement, the target set under Maritime India Vision (MIV) 2030 to become the world's leading
ship recycling nation has been achieved well ahead of schedule.
This achievement reflects the impact of maritime policy reforms and ease-of-doing-business initiatives
undertaken by the Government of India under the visionary leadership of Prime Minister Narendra Modi.
On this occasion, the Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda
Sonowal, said, "India's emergence as 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."
Key Government Initiatives
To strengthen India's ship recycling ecosystem and capture a larger share of the global market, the
Ministry of Ports, Shipping and Waterways (MoPSW) has undertaken several initiatives:
Hong Kong Convention Compliance:
The Government of India 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 (HKC), which India ratified in 2019.
The government has provided financial assistance of ₹53.5 crore to support the modernisation of ship
recycling yards, helping 115 facilities become HKC-compliant.Ship-breaking Credit Note Scheme:
MoPSW 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. The credit note can be utilised toward payment of
up to 5% of the value of a new vessel built at an Indian shipyard, thereby promoting both ship recycling
and domestic shipbuilding.
Stakeholder Engagement:
MoPSW regularly engages with the Gujarat Maritime Board, the Ship Recycling Industries Association,
global shipping companies, cash buyers, classification societies and international organisations to identify
challenges and implement targeted solutions.
Inclusion Under European Union Ship Recycling Regulations (EUSRR):
The Government of India is actively pursuing the inclusion of Indian ship recycling yards in the European
Union's approved list of recycling facilities. Continuous engagement with relevant authorities is underway
to facilitate approvals.
Expansion of Alang Ship Recycling Yard:
India aims to nearly double its ship recycling capacity to about 9 million light displacement tons (LDT)
through the planned expansion of the Alang Ship Recycling Yard. The Government of Gujarat has
prepared a comprehensive master plan to support future demand, improve infrastructure and enhance
India's competitiveness in the global market.
Strong Growth Prospects
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are
expected to be recycled globally over the next decade. With a current market share of 35.4%, India is well-
positioned to recycle approximately 500 to 600 vessels annually while continuing to expand its ship
recycling capacity.
A Sustainable Ship Recycling Future
India's rise to the top position in global ship recycling is the result of a coordinated strategy focused on
sustainability, regulatory reforms, infrastructure development and industry collaboration. 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.
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