India became the world's leading ship recycling country in 2025. Ranking first globally, India's share of global ship recycling upsurged to 35.4 per cent in 2025 from 30.1 per cent in 2024, according to the latest data released by the United Nations Conference on Trade and Development (UNCTAD). Ship recycling in India has increased significantly to 2.99 million gross tons (GT) in 2025, rising approximately 60 per cent from 1.86 million GT in 2024. After this milestone, the target set under Maritime India Vision (MIV) 2030 to become the leading ship recycling nation of the world has been achieved well before the schedule. This milestone highlights the success of maritime sector reforms and ease-of-doing-business measures introduced by the Government of India under the leadership of Prime Minister Narendra Modi. In response to the development, the Union Minister of Ports, Shipping &amp; Waterways (MoPSW), Sarbananda Sonowal, said, "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 under the visionary leadership of Prime Minister Narendra Modi. It reinforces India's position as a global hub for responsible and sustainable ship recycling."&nbsp;Also read: <a href="https://www.wionews.com/trending/nasa-satellite-photo-shows-super-el-ni-o-has-elevated-sea-levels-in-pacific-1782134815575">NASA satellite photo shows Super El Niño has triggered a very specific change in the Pacific</a><h3>Recycling of Ships Act, 2019</h3>To strengthen the ship recycling industry, the government enacted the Recycling of Ships Act, 2019, creating a regulatory framework in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019. The Centre has also extended financial support of Rs 53.5 crore for the modernisation of ship recycling facilities, enabling 115 yards to meet HKC standards and improve environmental and safety compliance. In addition, MoPSW initiated the Ship-breaking Credit Note policy, under which ship owners receive a credit note similar to 40 per cent of the scrap value of a recycled ship. This credit can be utilised toward payment of up to 5 per cent of the value of a new vessel designed at an Indian shipyard, for both ship recycling and domestic shipbuilding. MoPSW regularly involves the Gujarat Maritime Board, global shipping companies, the Ship Recycling Industries Association, cash buyers, classification societies and international organisations to figure out challenges implementing targeted solutions. The Indian government is actively going after the inclusion of Indian ship recycling yards in the approved list of recycling facilities of the European Union. Continuous participation with the required officials is underway to facilitate approvals. India is targeting a significant increase in its ship recycling capacity, aiming to raise it to nearly 9 million light displacement tonnes (LDT) through the proposed expansion of the Alang Ship Recycling Yard. To facilitate this growth, the Gujarat government has developed a comprehensive master plan focused on meeting future demand, upgrading infrastructure and strengthening India's position in the global ship recycling industry.

MoPSW launched the Ship-breaking Credit Note policy, allowing ship owners to receive credits worth 40% of a vessel's scrap value. The credit can be used to pay up to 5% of the cost of a new ship built at an Indian shipyard, boosting both ship recycling and domestic shipbuilding.

India became the world's leading ship recycling country in 2025. Ranking first globally, India's share of global ship recycling upsurged to 35.4 per cent in 2025 from 30.1 per cent in 2024, according to the latest data released by the United Nations Conference on Trade and Development (UNCTAD). Ship recycling in India has increased significantly to 2.99 million gross tons (GT) in 2025, rising approximately 60 per cent from 1.86 million GT in 2024. After this milestone, the target set under Maritime India Vision (MIV) 2030 to become the leading ship recycling nation of the world has been achieved well before the schedule. This milestone highlights the success of maritime sector reforms and ease-of-doing-business measures introduced by the Government of India under the leadership of Prime Minister Narendra Modi. In response to the development, the Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, said, "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 under the visionary leadership of Prime Minister Narendra Modi. It reinforces India's position as a global hub for responsible and sustainable ship recycling." Also read: NASA satellite photo shows Super El Niño has triggered a very specific change in the Pacific Recycling of Ships Act, 2019 To strengthen the ship recycling industry, the government enacted the Recycling of Ships Act, 2019, creating a regulatory framework in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which India ratified in 2019. The Centre has also extended financial support of Rs 53.5 crore for the modernisation of ship recycling facilities, enabling 115 yards to meet HKC standards and improve environmental and safety compliance. In addition, MoPSW initiated the Ship-breaking Credit Note policy, under which ship owners receive a credit note similar to 40 per cent of the scrap value of a recycled ship. This credit can be utilised toward payment of up to 5 per cent of the value of a new vessel designed at an Indian shipyard, for both ship recycling and domestic shipbuilding. MoPSW regularly involves the Gujarat Maritime Board, global shipping companies, the Ship Recycling Industries Association, cash buyers, classification societies and international organisations to figure out challenges implementing targeted solutions. The Indian government is actively going after the inclusion of Indian ship recycling yards in the approved list of recycling facilities of the European Union. Continuous participation with the required officials is underway to facilitate approvals. India is targeting a significant increase in its ship recycling capacity, aiming to raise it to nearly 9 million light displacement tonnes (LDT) through the proposed expansion of the Alang Ship Recycling Yard. To facilitate this growth, the Gujarat government has developed a comprehensive master plan focused on meeting future demand, upgrading infrastructure and strengthening India's position in the global ship recycling industry.

MoPSW launched the Ship-breaking Credit Note policy, allowing ship owners to receive credits worth 40% of a vessel's scrap value. The credit can be used to pay up to 5% of the cost of a new ship built at an Indian shipyard, boosting both ship recycling and domestic shipbuilding.

India becomes world's top ship recycling nation, achieves MIV 2030 goal ahead of schedule

India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report.

Further, according to CareEdge, India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which handled 46 per cent as detailed in a report by the Press Trust of India.

"India's ship recycling Industry is poised for major growth in CY25 and is expected to witness similar recycling level in CY24 with an estimate of 2.3 to 2.6 million GT, thereafter a jump to over 3.8 to 4.2 million GT in CY25," said Sajani Shah, Assistant Director at CareEdge.

The PTI report further stated that, the ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28, she said, adding cooling-off of Baltic Dry Index, stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards.

Further, according to Shah, countries having better infrastructure and green recycling facilities are expected to attract a larger portion of ships in future. India's share in the global recycling industry remained around 27 per cent in the past, before increasing to around 33 per cent in CY22 and CY23, reflecting a rise in its contribution amidst global declines.

In terms of volume, in CY22 and CY23, India dismantled 2.26 and 2.47 million GT, respectively, CareEdge said. 

Ship recyclers are supported by favourable financial structure owing to low debt levels in lower ship recycling activities, low fixed overheads and contract-based employees in the operations. Further, Convergence of factors such as stability in freight and steel scrap prices with expected increase in availability of obsolete ships implies ship recycling activity will rise going forward, it said.

It also said that decline in global ship-recycling activities combined with stable addition in shipping capacity in recent years highlights the growing number of obsolete vessels still in operation.

As newer, more efficient vessels are introduced, older ships become increasingly unviable for operation. This trend creates a rising need for ship recycling, as operators seek to retire aging vessels that are no longer economically feasible to maintain, the ratings agency stated.

According to the report, the Indian ship recycling sector activity faced a decline amid rise in heavy melting scrap prices in FY23 and FY24.

Prices for heavy melting scrap at Bhavnagar, in Gujarat surged from Rs 28,800 per tonne in August 2020 to a peak of Rs 54,400 per tonne in April 2022, driven by supply chain disruptions and heightened demand for steel amid post-pandemic economic recovery efforts.<o:p></o:p>

However, after peaking, scrap prices began to decline, settling at Rs 39,900 per tonne in December 2023. Since January 2023, prices have stabilised between Rs 36,000 per tonne and Rs 44,000 per tonne, it said.

This recent stabilisation suggests that the market has adjusted to post-pandemic conditions, providing a more predictable cost structure for industries reliant on scrap metal, CareEdge stated.

India's ship-recycling industry is a crucial part of the global maritime sector with the top four countries -- Bangladesh, India, Pakistan, and Turkey -- ?dominating the ship-recycling industry, dismantling over 90 per cent of the global ship recycling volume, according to ICRA. In India, Alang in Gujarat is among the largest ship recycling facilities in the world with over 140 recycling yards.

India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report.

India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report. Further, according to CareEdge, India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which handled 46 per cent as detailed in a report by the Press Trust of India. "India's ship recycling Industry is poised for major growth in CY25 and is expected to witness similar recycling level in CY24 with an estimate of 2.3 to 2.6 million GT, thereafter a jump to over 3.8 to 4.2 million GT in CY25," said Sajani Shah, Assistant Director at CareEdge. The PTI report further stated that, the ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28, she said, adding cooling-off of Baltic Dry Index, stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards. Further, according to Shah, countries having better infrastructure and green recycling facilities are expected to attract a larger portion of ships in future. India's share in the global recycling industry remained around 27 per cent in the past, before increasing to around 33 per cent in CY22 and CY23, reflecting a rise in its contribution amidst global declines. In terms of volume, in CY22 and CY23, India dismantled 2.26 and 2.47 million GT, respectively, CareEdge said. Ship recyclers are supported by favourable financial structure owing to low debt levels in lower ship recycling activities, low fixed overheads and contract-based employees in the operations. Further, Convergence of factors such as stability in freight and steel scrap prices with expected increase in availability of obsolete ships implies ship recycling activity will rise going forward, it said. It also said that decline in global ship-recycling activities combined with stable addition in shipping capacity in recent years highlights the growing number of obsolete vessels still in operation. As newer, more efficient vessels are introduced, older ships become increasingly unviable for operation. This trend creates a rising need for ship recycling, as operators seek to retire aging vessels that are no longer economically feasible to maintain, the ratings agency stated. According to the report, the Indian ship recycling sector activity faced a decline amid rise in heavy melting scrap prices in FY23 and FY24. Prices for heavy melting scrap at Bhavnagar, in Gujarat surged from Rs 28,800 per tonne in August 2020 to a peak of Rs 54,400 per tonne in April 2022, driven by supply chain disruptions and heightened demand for steel amid post-pandemic economic recovery efforts. However, after peaking, scrap prices began to decline, settling at Rs 39,900 per tonne in December 2023. Since January 2023, prices have stabilised between Rs 36,000 per tonne and Rs 44,000 per tonne, it said. This recent stabilisation suggests that the market has adjusted to post-pandemic conditions, providing a more predictable cost structure for industries reliant on scrap metal, CareEdge stated. India's ship-recycling industry is a crucial part of the global maritime sector with the top four countries -- Bangladesh, India, Pakistan, and Turkey -- ?dominating the ship-recycling industry, dismantling over 90 per cent of the global ship recycling volume, according to ICRA. In India, Alang in Gujarat is among the largest ship recycling facilities in the world with over 140 recycling yards.

India's ship recycling industry set for significant growth by 2025

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