India Becomes the World’s Leading Ship Recycling Nation in 2025, Achieving Maritime India Vision 2030 Target Five Years Ahead of Schedule
- MGMMTeam
- 5 hours ago
- 4 min read
In a landmark development for the maritime sector, India has firmly established itself as the global leader in ship recycling. According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), the country’s share of worldwide ship recycling activity surged to 35.4 percent in 2025, up from 30.1 percent in 2024. This impressive growth enabled India to process a record 2.99 million gross tons (GT) of ships during the year, representing a nearly 60 percent increase compared to 1.86 million GT recycled in 2024. With this achievement, India has successfully met and surpassed a key target under the Maritime India Vision (MIV) 2030 five years ahead of the original timeline.
The milestone underscores the transformative impact of sustained policy initiatives, infrastructure development, and collaborative efforts between the government and industry stakeholders. It positions India not only as a dominant force in global ship recycling but also as a key contributor to sustainable maritime practices and the circular economy.
Sharp Rise in Ship Recycling Activity
The year 2025 witnessed a remarkable acceleration in ship recycling volumes across Indian facilities. The substantial increase in both tonnage and market share reflects improved operational efficiency, greater international confidence in Indian yards, and the successful implementation of modernization programs. This growth comes at a time when the global shipping industry is witnessing a steady stream of older vessels reaching the end of their operational life, creating opportunities for countries equipped with the necessary infrastructure and regulatory framework.
India’s performance stands out particularly because it has combined higher volumes with a strong emphasis on adherence to international standards, setting a positive example in a sector often scrutinized for environmental and safety considerations.
Government Initiatives and Regulatory Framework
The Ministry of Ports, Shipping and Waterways (MoPSW) has been instrumental in driving this success through a series of well-planned reforms. A cornerstone of these efforts was the enactment of the Recycling of Ships Act, 2019, following India’s ratification of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). This legislation provides a comprehensive framework to ensure that ship recycling activities meet the highest standards of safety, health, and environmental protection.
To support the transition toward greener and more efficient operations, the government extended financial assistance of ₹53.5 crore for the modernization of ship recycling yards. As a result, 115 facilities have achieved compliance with HKC standards, significantly enhancing the overall quality and reputation of Indian ship recycling infrastructure.
In addition, the ministry introduced the innovative Ship-breaking Credit Note Scheme. Under this scheme, ship owners receive a credit note equivalent to 40 percent of the scrap value of a recycled vessel. This credit can be utilized toward payment of up to 5 percent of the value of a new ship constructed in an Indian shipyard. The measure effectively creates a symbiotic relationship between ship recycling and domestic shipbuilding, encouraging investment in both segments of the maritime value chain.
Stakeholder Collaboration and Global Engagement
The government has maintained active engagement with a wide range of stakeholders, including the Gujarat Maritime Board, the Ship Recycling Industries Association, international shipping companies, classification societies, cash buyers, and global organizations. These regular interactions have helped identify and resolve operational challenges, improve competitiveness, and foster an environment conducive to sustainable growth.
India is also actively pursuing the inclusion of its ship recycling yards in the approved list under the European Union Ship Recycling Regulation (EUSRR). Ongoing discussions with relevant authorities are expected to open new avenues for high-quality international tonnage to be recycled in Indian facilities.
Expansion Plans at Alang and Capacity Building
The iconic Alang-Sosiya Ship Recycling Yard in Gujarat continues to serve as the backbone of India’s ship recycling industry. Located along the Gulf of Khambhat, the yard benefits from natural geographical advantages that make it highly suitable for large-scale shipbreaking operations. To meet rising future demand, the Gujarat government has prepared a comprehensive master plan for expansion. The initiative aims to nearly double the country’s recycling capacity to approximately 9 million light displacement tons (LDT) through the addition of new plots, development of supporting infrastructure, and implementation of advanced environmental management systems.
These developments are expected to further strengthen India’s ability to handle a larger share of the global recycling market while maintaining focus on safety and sustainability.
Strong Outlook for the Sector
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 ships are projected to be recycled worldwide over the next decade. Given its current market leadership, India is well-placed to recycle between 500 and 600 vessels annually in the coming years. This scale of activity is anticipated to generate significant economic benefits, including steel recovery for industrial use, employment opportunities, and contributions to national maritime growth.
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, described the achievement as a reflection of sustained policy reforms, active industry participation, and a strong commitment to international environmental and safety standards. He emphasized that such progress would play a vital role in establishing India as a global maritime hub and advancing the goals of sustainable development.
The MGMM Outlook
India’s emergence as the world’s leading ship recycling nation in 2025 highlights the success of long-term policy reforms and strategic investments in the maritime sector. Achieving the Maritime India Vision 2030 target five years ahead of schedule demonstrates the country’s growing capability to combine economic growth with responsible and sustainable industrial practices. The sharp rise in recycling volumes, supported by modernized facilities and adherence to international environmental standards, has strengthened India’s position as a trusted global hub for ship recycling.
Government initiatives such as the Recycling of Ships Act, financial support for yard modernization, and the Ship-breaking Credit Note Scheme have created a strong ecosystem linking ship recycling with domestic shipbuilding. With Alang continuing to serve as the backbone of the industry and expansion plans already underway, India is well positioned to capitalize on the increasing global demand for vessel recycling. The sector’s growth is expected to generate employment, enhance resource recovery, and further reinforce India’s ambition of becoming a major maritime power with a strong commitment to sustainability.
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