India becomes world’s top ship recycling country in 2025, meets 2030 vision target five years ahead of schedule | Today’s news
India will become the world leader in ship recycling in 2025, increasing its market share to 35.4% from 30.1% in 2024, according to a United Nations Conference on Trade and Development (UNCTAD) report cited by the Ministry of Shipping. The country handled 2.99 million gross tons (GT) during the year, a nearly 60% increase from 1.86 million GT in 2024.
With this, the ministry said, India has achieved its Maritime India Vision (MIV) 2030 goal of becoming the world’s top ship recycling country well in advance. The success reflects the impact of maritime policy reforms and government reforms business facilitation initiatives, he added.
“India’s emergence as the country with the highest rate of ship recycling in the world reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards. It strengthens India’s position as a global center for responsible and sustainable ship recycling,” said Minister of Ports and Shipping Sarbananda Sonowal.
Political initiatives
India enacted the Ship Recycling Act, 2019 to create a ship recycling ecosystem in line with the Hong Kong International Convention on Safe and Environmentally Friendly Ship Recycling (HKC), which the country ratified in 2019.
The government also provided financial assistance ₹53.5 million to support modernization of ship recycling yards, which will help 115 facilities become HKC compliant.
In addition, the Department of Shipping has launched an anti-shipbreaking credit program where ship owners receive a credit equivalent to 40% of the value of the waste recycled ship. The credit can be used to pay up to 5% of the value of a new vessel built at an Indian shipyard, encouraging both ship recycling and domestic shipbuilding. The government is also actively pursuing the inclusion of Indian ship recycling facilities in the European Union’s approved list of recycling facilities.
India aims to almost double its ship recycling capacity to approximately 9 million light displacement tonnes (LDT) by expanding the Alang Ship Recycling Yard. The Government of Gujarat has prepared a comprehensive master plan to support future demand, improve infrastructure and strengthen India’s competitiveness in the global market.
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled worldwide over the next decade. With a current market share of 35.4%, India is well positioned to recycle 500 to 600 vessels per year while continuing to expand its ship recycling capacity.
“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 cooperation. 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 goals of a circular economy and sustainable maritime development,” the ministry said in a statement.
