India tops global ship recycling rankings, hits 2030 maritime goal

India has emerged as the world’s leading ship recycling nation in 2025, achieving a major milestone five years ahead of the target set under Maritime India Vision 2030, according to data released by the United Nations Conference on Trade and Development (UNCTAD) on June 22, 2026. India’s share of global ship recycling increased to 35.4% in 2025 from 30.1% in 2024, with total recycling volumes rising nearly 60% year-on-year to 2.99 million gross tons (GT).

The achievement, announced by the Ministry of Ports, Shipping and Waterways (MoPSW), has been attributed to policy reforms, infrastructure upgrades, sustainability measures and ease-of-doing-business initiatives implemented by the government. The announcement marks a significant achievement for India’s maritime sector, with the country reaching its Maritime India Vision 2030 objective of becoming the global leader in ship recycling well before the original deadline.

To strengthen India’s position in the sector, the government has introduced a series of initiatives aimed at expanding capacity and improving environmental compliance. A major step was the enactment of the Recycling of Ships Act, 2019, which established a regulatory framework aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), ratified by India in the same year.

The government has also extended financial support of 535 million to modernise ship recycling infrastructure, enabling 115 recycling facilities to become compliant with HKC standards.

Another initiative, the Ship-breaking Credit Note Scheme, offers ship owners a credit note equivalent to 40% of the scrap value of a recycled vessel. The incentive can be used to cover up to 5% of the cost of constructing a new vessel at an Indian shipyard, supporting both recycling activity and domestic shipbuilding.

The Ministry has also continued engagement with stakeholders including the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies and international organisations to address operational challenges and strengthen competitiveness.

At the international level, India is pursuing the inclusion of its recycling facilities under the European Union Ship Recycling Regulation (EUSRR), with ongoing engagement aimed at securing approvals for Indian yards.

Capacity expansion is also underway at the Alang Ship Recycling Yard, where India plans to nearly double national ship recycling capacity to around 9 million light displacement tons (LDT). The Government of Gujarat has prepared a master plan focused on infrastructure upgrades and future demand.

Industry forecasts point to continued growth opportunities. 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 global market share of 35.4%, India is positioned to recycle an estimated 500–600 vessels annually while further expanding its capacity.

India’s rise in global ship recycling highlights the growing importance of sustainable maritime practices, regulatory alignment and circular economy principles as the country seeks to consolidate its leadership position in the sector.