India Becomes World’s Largest Ship Recycling Nation, Achieves Maritime India Vision 2030 Target Ahead of Schedule
- IBEF
- June 23, 2026
India has emerged as the world's leading ship recycling nation in 2025, achieving a key target under the Maritime India Vision (MIV) 2030 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 increased to 35.40% in 2025 from 30.10% in 2024, while the volume of ship recycling rose by nearly 60% to 2.99 million gross tons (GT) from 1.86 million GT a year earlier. Union Minister for Ports, Shipping and Waterways Mr. Sarbananda Sonowal stated that the achievement reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards. The Government has strengthened the sector through the Recycling of Ships Act, 2019, which aligns India's ship recycling framework with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). To modernise facilities, financial assistance of Rs. 53.50 crore (US$ 6.05 million) has been provided, helping 115 ship recycling yards become HKC-compliant.
The Government has also introduced the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equivalent to 40% of the scrap value of a recycled vessel. The credit note can be utilised to pay up to 5% of the cost of a new vessel built at an Indian shipyard, supporting both ship recycling and domestic shipbuilding. Looking ahead, India plans to nearly double its ship recycling capacity to around 9 million light displacement tons (LDT) through the expansion of the Alang Ship Recycling Yard in Gujarat. 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 its current market share, India is well-positioned to recycle approximately 500-600 vessels annually, further strengthening its position as a global hub for sustainable and environmentally responsible ship recycling. The achievement highlights India's growing competitiveness in maritime services and supports the country's broader objective of becoming a leading global maritime nation.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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