India Becomes World’s Largest Ship Recycling Nation, Achieves Maritime India Vision Target Ahead of Schedule
India has emerged as the world’s leading ship recycling nation in 2025, achieving a key Maritime India Vision (MIV) 2030 objective several years ahead of schedule and reinforcing its growing role in the global maritime economy.
According to the latest data released by the United Nations Conference on Trade and Development (UNCTAD), India’s ship recycling volume increased sharply to 2.99 million gross tonnes (GT) in 2025, compared with 1.86 million GT in 2024. The nearly 60% year-on-year growth has propelled India’s share of the global ship recycling market to 35.4%, up from 30.1% a year earlier.
The milestone marks a significant shift in the global ship recycling landscape, where India has steadily strengthened its position through regulatory reforms, infrastructure upgrades and a growing emphasis on environmentally responsible recycling practices.
The achievement is particularly noteworthy because ship recycling is no longer viewed merely as an end-of-life maritime activity. Increasingly, it is being recognised as a strategic component of industrial resource recovery, circular economy development and sustainable maritime infrastructure.
From Ship-Breaking Yard to Strategic Maritime Industry
India’s rise to the top of the global rankings reflects a broader transformation underway in the country’s maritime sector.
For decades, ship recycling was largely associated with dismantling ageing vessels and recovering scrap steel. While economically important, the sector often remained outside mainstream industrial policy discussions and was frequently scrutinised for environmental and worker safety concerns. That story is changing.
As global shipping companies face mounting pressure from regulators, investors and ESG-focused stakeholders to ensure responsible disposal of vessels, ship recycling has evolved into a highly regulated industrial activity where environmental compliance, worker welfare and operational transparency increasingly determine competitiveness.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal described the achievement as the outcome of sustained policy reforms, industry participation and adherence to international standards.
“India’s emergence as the world’s top ship recycling nation reflects the success of sustained policy reforms, industry efforts and adherence to international environmental and safety standards. It reinforces India’s position as a global hub for responsible and sustainable ship recycling,” he said.
Regulatory Reforms Lay the Foundation
A major catalyst behind the sector’s growth has been the implementation of the Recycling of Ships Act, 2019.
The legislation was introduced to align India’s ship recycling ecosystem with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Since ratifying the convention, India has undertaken a systematic effort to modernise recycling facilities and strengthen compliance frameworks.
The Ministry of Ports, Shipping and Waterways has provided financial assistance of ₹53.5 crore for yard modernisation, enabling 115 ship recycling facilities to achieve compliance with Hong Kong Convention standards.
This transition has significantly altered India’s positioning in the global market. Rather than competing solely on cost, Indian recyclers are increasingly competing on compliance, environmental performance and operational reliability.
The Circular Economy Story Behind Ship Recycling
The significance of ship recycling extends far beyond the maritime sector.
A decommissioned vessel is effectively a floating inventory of industrial resources. Steel constitutes the majority of a ship’s structure, while valuable materials such as copper, aluminium, machinery, electrical equipment and reusable components can be recovered and reintroduced into manufacturing supply chains.
For a rapidly industrialising economy such as India, this creates an important secondary source of raw materials.
At a time when resource efficiency and sustainability are becoming central policy priorities, ship recycling supports multiple national objectives simultaneously. It reduces dependence on virgin raw materials, contributes to steel availability, promotes industrial reuse and strengthens circular economy practices.
Viewed through this lens, India’s leadership in ship recycling is not simply a maritime achievement. It is also an industrial and resource-management success.
Alang’s Transformation into a Global Recycling Hub
At the heart of India’s ship recycling success lies the Alang-Sosiya Ship Recycling Yard in Gujarat.
Widely recognised as the world’s largest ship recycling cluster, Alang accounts for the overwhelming majority of India’s recycling activity and has played a decisive role in the country’s rise to global leadership.
What makes Alang’s story particularly significant is its transformation.
Historically, the facility was often cited in international discussions around environmental management and labour practices. Over the past decade, however, extensive investments in safety systems, waste management infrastructure, hazardous material handling and environmental compliance have reshaped the ecosystem.
Today, many yards operating at Alang comply with international recycling standards and are increasingly viewed as viable destinations for global shipping companies seeking environmentally responsible recycling solutions.
Recognising future demand, the Government of Gujarat has prepared a comprehensive expansion plan that aims to nearly double India’s ship recycling capacity to approximately 9 million light displacement tonnes (LDT), further strengthening the country’s competitive position.
Industry Institutions Have Played a Critical Role
Policy support alone does not explain the industry’s growth.
Industry organisations such as the Ship Recycling Industries Association (India) have played an important role in improving standards across the ecosystem. Through engagement with recyclers, regulators, classification societies and international stakeholders, the association has contributed to efforts around worker safety, environmental compliance and operational best practices.
Regular consultations between the Ministry of Ports, Shipping and Waterways, Gujarat Maritime Board, recycling associations and global shipping stakeholders have also helped identify bottlenecks and accelerate reforms.
This collaborative approach has been instrumental in improving the sector’s international credibility.
Linking Recycling with Shipbuilding
One of the more innovative aspects of India’s maritime strategy has been the Ship-breaking Credit Note Scheme.
Under the programme, ship owners receive a credit note equivalent to 40% of the scrap value of a recycled vessel. The credit can subsequently be used to pay up to 5% of the value of a new ship built at an Indian shipyard.
The policy creates a direct link between ship recycling and domestic shipbuilding, encouraging vessel replacement while supporting India’s ambitions to emerge as a stronger maritime manufacturing nation.
Rather than treating recycling as a standalone activity, policymakers are attempting to integrate it into a broader maritime industrial ecosystem.
The Human Infrastructure Behind the Industry
Behind every recycled vessel lies a workforce that often receives far less attention than policy announcements and infrastructure investments.
The ship recycling sector supports thousands of workers involved in cutting operations, engineering services, logistics, material recovery, safety management and environmental monitoring.
As the industry seeks greater global acceptance, workforce development is becoming increasingly important. Investments in training, safety awareness and worker welfare are now viewed as essential elements of long-term competitiveness.
The evolution of India’s ship recycling industry therefore depends not only on physical infrastructure but also on the quality of its human infrastructure.
Positioning for the Next Global Recycling Cycle
The timing of India’s emergence as the market leader is particularly significant.
According to industry estimates from the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to enter the global recycling market over the next decade as ageing fleets are retired and environmental regulations tighten.
With a global market share of 35.4%, India is well positioned to capture a substantial portion of this future demand. Industry projections suggest the country could potentially recycle between 500 and 600 vessels annually while continuing to expand capacity.
Simultaneously, efforts are underway to secure inclusion of Indian yards under the European Union Ship Recycling Regulation, a move that could unlock additional opportunities from European shipowners seeking approved recycling facilities.
Beyond Ship Recycling: Building a Maritime Industrial Ecosystem
While becoming the world’s largest ship recycling nation is an important achievement, the bigger story may lie in what comes next.
India is increasingly attempting to build an integrated maritime ecosystem where ports, logistics, shipbuilding, ship repair and ship recycling reinforce one another. The ship recycling sector offers an opportunity to strengthen domestic manufacturing supply chains, support resource recovery and contribute to circular economy objectives.
The country’s rise to the top position therefore represents more than a global ranking.
It reflects the successful evolution of a traditional industry into a compliance-driven, sustainability-focused and strategically significant component of India’s maritime economy.
If ongoing reforms, capacity expansion plans and industrial linkages continue to gain momentum, ship recycling could become not only a source of global leadership but also a cornerstone of India’s broader ambition to emerge as a major maritime and industrial power.
