India has emerged as the world's largest ship recycling nation, achieving a key Maritime India Vision (MIV) 2030 goal well ahead of schedule and strengthening its position in the global circular economy.

According to the latest data from the United Nations Conference on Trade and Development (UNCTAD), India's share of global ship recycling rose to 35.4% in 2025, up from 30.1% in 2024. The country recycled 2.99 million gross tonnes (GT) of ships during the year, representing an increase of nearly 60% compared with the 1.86 million GT recorded a year earlier.

The achievement marks a significant milestone for India's maritime sector, which has undergone a steady transformation through policy reforms, infrastructure upgrades and greater alignment with international environmental standards.

Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, described the development as a reflection of sustained policy efforts and industry participation.

"India's emergence as the world's top ship recycling nation reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards," he said.

A strategic industry

Ship recycling has become increasingly important as countries seek to recover valuable materials from end-of-life vessels while reducing dependence on virgin resources. Recycled steel, non-ferrous metals, machinery and equipment recovered from ships feed directly into manufacturing and construction supply chains, making the sector an important contributor to resource efficiency and industrial sustainability.

India's rise in the rankings also highlights the growing role of responsible recycling in the country's maritime strategy. The government had set a target under Maritime India Vision 2030 to become the world's leading ship recycling destination. Reaching that objective five years ahead of schedule signals the rapid pace at which the sector has expanded.

Reforms drive modernisation

A major factor behind the sector's growth has been the government's effort to align domestic ship recycling practices with international standards.

The enactment of the Recycling of Ships Act, 2019 created a framework consistent with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019. The legislation has encouraged the modernisation of recycling facilities and improved environmental and worker-safety practices across the industry.

To accelerate compliance, the government has provided financial assistance of ₹53.5 crore for yard modernisation, enabling 115 ship recycling facilities to become compliant with Hong Kong Convention requirements.

Another key intervention has been the Ship-breaking Credit Note Scheme. Under the programme, ship owners receive a credit note equivalent to 40% of the scrap value of a recycled vessel. The credit can be used towards the purchase of new ships built in Indian shipyards, creating a direct link between ship recycling and domestic shipbuilding.

India is also preparing for the next phase of expansion. The government plans to nearly double ship recycling capacity to around 9 million light displacement tonnes (LDT) through the expansion of the Alang ship recycling yard in Gujarat, one of the world's largest ship dismantling clusters. A comprehensive master plan has been prepared to strengthen infrastructure and support future demand.

At the same time, authorities are pursuing the inclusion of Indian recycling facilities under the European Union Ship Recycling Regulation (EUSRR), a move that could open access to additional international business opportunities.

Regular engagement with industry stakeholders, including the Gujarat Maritime Board, ship recyclers, shipping companies, classification societies and international organisations, has also helped identify operational challenges and improve competitiveness.

Industry prospects remain robust. According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to reach end-of-life and require recycling over the next decade. With a global market share exceeding 35%, India is positioned to handle between 500 and 600 vessels annually while continuing to expand its capacity.

The combination of regulatory support, international compliance, infrastructure investments and rising global demand has created a favourable environment for long-term growth. As shipping companies increasingly prioritise environmentally responsible disposal of vessels, India's ship recycling sector is expected to play an even larger role in global maritime sustainability.

The latest UNCTAD figures suggest that India's ship recycling industry has evolved far beyond traditional ship-breaking operations. It is now emerging as a strategic pillar of the country's circular economy ambitions, helping recover valuable materials, support industrial production and reinforce India's standing in sustainable maritime development.