THEBUSINESSBYTES BUREAU

NEW DELHI, JUNE 22, 2026

 

Declaring that Prime Minister Narendra Modi's maritime reforms have propelled India to the top position in global ship recycling, Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal hailed the country's emergence as the world's leading ship recycling nation in 2025. Achieving the Maritime India Vision (MIV) 2030 target years ahead of schedule, India has significantly expanded its share of the global ship recycling market, reflecting the success of sustained policy reforms, infrastructure modernisation and a strong commitment to environmentally responsible and sustainable maritime development.

According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India's share of global ship recycling increased to 35.4 per cent in 2025 from 30.1 per cent in 2024. Ship recycling volumes surged to 2.99 million gross tons (GT) in 2025, marking a nearly 60 per cent increase over 1.86 million GT recorded in 2024.

With this achievement, India has attained the target set under Maritime India Vision 2030 to become the world's leading ship recycling nation several years ahead of schedule.

This remarkable progress reflects the impact of maritime policy reforms and ease-of-doing-business initiatives undertaken by the Government of India under the visionary leadership of Prime Minister Narendra Modi.

On this occasion, the Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, said, "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."

To strengthen India's ship recycling ecosystem and expand its share in the global market, the Ministry of Ports, Shipping and Waterways (MoPSW) has undertaken several strategic initiatives:

The Government of India enacted the Recycling of Ships Act, 2019, to establish a ship recycling ecosystem aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.

To support this transition, the government has provided financial assistance amounting to ₹53.5 crore for the modernisation of ship recycling yards, enabling 115 facilities to become HKC-compliant.

MoPSW introduced the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equivalent to 40 per cent of the scrap value of a recycled vessel. The credit note can be utilised towards payment of up to 5 per cent of the value of a new ship constructed at an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding.

The Ministry regularly engages with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies and international organisations to identify sectoral challenges and implement targeted solutions.

The Government of India is actively pursuing the inclusion of Indian ship recycling yards in the European Union's approved list of recycling facilities. Continuous engagement with relevant authorities is underway to facilitate the approval process.

India plans to nearly double its ship recycling capacity to around 9 million light displacement tons (LDT) through the proposed expansion of the Alang Ship Recycling Yard. The Government of Gujarat has prepared a comprehensive master plan aimed at strengthening infrastructure, meeting future demand and enhancing India's competitiveness in the global ship recycling industry.

According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled globally over the next decade. With a current market share of 35.4 per cent, India is well-positioned to recycle approximately 500 to 600 vessels annually while continuing to expand its recycling capacity and capabilities.

India's ascent to the top position in global ship recycling is the result of a coordinated strategy centred on sustainability, regulatory reforms, infrastructure development and industry collaboration. With robust future demand, increasing compliance with international standards and continued policy support, the country is poised to further strengthen its leadership in responsible ship recycling while advancing the goals of the circular economy and sustainable maritime development.