India has become the world's leading ship recycling nation in 2025, securing the top global position with a 35.4% share of the global market, up from 30.1% in 2024, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD). The country's ship recycling volume surged to 2.99 million gross tons (GT) in 2025, a nearly 60% increase from 1.86 million GT in 2024. This achievement fulfills the target set under the Maritime India Vision (MIV) 2030 well ahead of schedule.
Policy Reforms and Government Initiatives Drive Growth
The milestone reflects the impact of maritime policy reforms and ease-of-doing-business initiatives led by Prime Minister Narendra Modi's government. Union Minister of Ports, Shipping & Waterways (MoPSW) Sarbananda Sonowal stated, "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."
Regulatory Framework and Financial Support
The government enacted the Recycling of Ships Act, 2019, aligning with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019. Financial assistance of ₹53.5 crore has been provided to modernize ship recycling yards, helping 115 facilities achieve HKC compliance. The Ship-breaking Credit Note Scheme, launched by MoPSW, offers ship owners a credit note equivalent to 40% of the scrap value of a recycled ship, which can be used for up to 5% of the value of a new vessel built at an Indian shipyard, promoting both recycling and domestic shipbuilding.
Capacity Expansion and Global Integration
MoPSW regularly collaborates with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies, and international organizations to address challenges and implement solutions. India is actively pursuing inclusion of its ship recycling yards in the European Union's approved list of recycling facilities, with ongoing engagement with relevant authorities. The country aims to nearly double its ship recycling capacity to about 9 million light displacement tons (LDT) through expansion of the Alang Ship Recycling Yard, supported by a comprehensive master plan from the Government of Gujarat to improve infrastructure and global competitiveness.
Future Outlook and Global Demand
According to the Baltic and International Maritime Council (BIMCO), over 16,000 vessels are expected to be recycled globally in the next decade. With a current market share of 35.4%, India is positioned to recycle approximately 500 to 600 vessels annually while expanding capacity. India's rise to the top 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 circular economy and sustainable maritime development objectives.
