India ranks first in the world in ship recycling in 2025

India has become the leading country in ship recycling in the world in 2025, securing the top position in the global ranking. India's share of the global ship recycling market increased from 30.1% in 2024 to 35.4% in 2025, according to the latest report from the United Nations Conference on Trade and Development (UNCTAD).

As reported by the Ministry of Ports, Shipping and Waterways of India (MoPSW) on June 22, this achievement confirms the fulfillment of the goal set under the "Maritime India: Vision 2030" initiative to become the leading country in ship recycling, significantly ahead of the planned timeline. This achievement reflects the impact of reforms in maritime policy and initiatives to improve the business environment undertaken by the Government of India under the leadership of Prime Minister Narendra Modi.

"India's emergence as the leading country in ship recycling globally confirms the success of consistent policy reforms, industry efforts, and adherence to international environmental and safety standards," noted Sarbananda Sonowal, Minister of Ports, Shipping and Waterways.

Initiatives to strengthen the ship recycling ecosystem

• The Government of India enacted the Ship Recycling Act in 2019 to develop a recycling ecosystem compliant with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
• The government provided financial assistance of ₹53.5 crore for the modernization of ship recycling yards, enabling 115 facilities to meet HKC standards.
• MoPSW launched a Credit Note Scheme for ship recycling, under which ship owners receive a credit note equivalent to 40% of the scrap value of the recycled vessel.
• The ministry is actively engaging with the Gujarat Maritime Board, the Ship Recycling Industry Association, global shipping companies, and international organizations to identify issues and implement targeted solutions.

According to the ministry, the Government of India is actively working to include Indian ship recycling yards in the approved list of facilities by the European Union. Ongoing engagement with relevant authorities is being conducted to obtain approvals.

India plans to nearly double its ship recycling capacity to around 9 million light displacement tons (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 enhance India's competitiveness in the global market.

According to the Baltic and International Maritime Council (BIMCO), over 16,000 ships are expected to be recycled worldwide in the next decade. With the current market share of 35.4%, India is well-positioned to recycle approximately 500-600 ships annually while continuing to expand its capacities.