India becomes world's top ship recycling nation in 2025

India has emerged as the world's leading ship recycling nation in 2025, achieving a significant milestone in its maritime sector and surpassing its Maritime India Vision (MIV) 2030 target five years ahead of schedule. According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India's share of global ship recycling rose to 35.4 per cent in 2025, up from 30.1 per cent in 2024.

The report highlights a substantial increase in recycling activity, with India processing 2.99 million gross tons (GT) of ships in 2025 compared to 1.86 million GT in the previous year. This nearly 60 per cent growth has placed the country at the forefront of the global ship recycling industry, reinforcing its growing importance in international maritime trade and sustainability efforts.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal attributed the achievement to a combination of policy reforms, industry participation and adherence to international environmental and safety standards. He stated that India's emergence as the global leader in ship recycling reflects the success of sustained reforms and strengthens the country's position as a hub for responsible and sustainable ship recycling.

To strengthen the sector, the government enacted 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. Financial assistance worth ₹53.5 crore has been provided for the modernisation of ship recycling facilities, helping 115 yards become compliant with international standards.

The Ministry of Ports, Shipping and Waterways has also introduced the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note worth 40 per cent of a vessel's scrap value. The credit can be used to cover up to 5 per cent of the cost of a new vessel built at an Indian shipyard, promoting both recycling and domestic shipbuilding.

The government is further engaging with industry stakeholders and pursuing the inclusion of Indian ship recycling yards under the European Union Ship Recycling Regulations (EUSRR), a move expected to improve access to global markets.

Looking ahead, India plans to nearly double its recycling capacity through the expansion of the Alang Ship Recycling Yard in Gujarat. Industry estimates by BIMCO suggest that over 16,000 vessels will require recycling worldwide over the next decade. With growing capacity, strong regulatory support and a focus on sustainability, India is well-positioned to maintain its leadership in ship recycling while advancing the goals of the circular economy and sustainable maritime development.