India has established itself as the world’s leading ship recycling destination in 2025, achieving one of the major objectives outlined in the Maritime India Vision 2030 several years ahead of schedule. According to the latest assessment released by the United Nations Conference on Trade and Development, the country accounted for 35.40% of global ship recycling activity during the year, up from 30.10% recorded in 2024.
The volume of vessels processed in India witnessed a substantial jump, climbing nearly 60% year-over-year to 2.99 million gross tons compared with 1.86 million gross tons in the previous year. The milestone underscores the country’s growing importance in the maritime sector and highlights the success of efforts aimed at building a sustainable and internationally compliant recycling ecosystem.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal attributed the achievement to years of policy initiatives, modernization efforts, and the industry’s commitment to maintaining high environmental and safety standards. The government strengthened the regulatory framework through the Recycling of Ships Act, 2019, aligning domestic practices with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
To support the transformation of recycling facilities, authorities provided financial assistance amounting to approximately $6.05 million. As a result, 115 ship recycling yards have upgraded their operations to comply with international standards established under the Hong Kong Convention.
The government has also introduced measures designed to encourage both recycling and shipbuilding. Under the Ship-breaking Credit Note Scheme, owners of dismantled vessels receive incentives equal to 40% of the scrap value. These credits can be applied toward up to 5% of the cost of constructing a new vessel at an Indian shipyard, creating stronger links between the two industries.
Looking ahead, India plans to significantly expand its ship recycling capabilities through the development of the Alang Ship Recycling Yard in Gujarat. Capacity is expected to nearly double to around 9 million light displacement tons.
Industry estimates from the Baltic and International Maritime Council suggest that more than 16,000 vessels will require recycling over the next decade. With its growing market presence, India is expected to process roughly 500 to 600 ships annually, reinforcing its position as a global center for environmentally responsible maritime recycling and advancing its ambition of becoming a leading maritime power.
