India has become the leading nation in ship recycling globally in 2025, with a market share of 35.4%, up from 30.1% the previous year, as per the United Nations Conference on Trade and Development (UNCTAD). Ship recycling in India saw a significant increase to 2.99 million gross tons in 2025, a rise of almost 60% from 1.86 million GT in 2024, according to an official statement. This accomplishment surpasses the target set under Maritime India Vision (MIV) 2030 well ahead of schedule, as stated by the Ministry of Ports, Shipping and Waterways.
The success is attributed to maritime policy reforms and business-friendly initiatives by the government, led by Prime Minister Narendra Modi. Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, highlighted that India’s top position in ship recycling is a result of sustained policy reforms, industry efforts, and compliance with international environmental and safety standards. With a current market share of 35.4%, India is poised to recycle around 500 to 600 vessels annually, aligning with the Baltic and International Maritime Council’s (BIMCO) projection of over 16,000 vessels to be recycled globally in the next decade.
The government’s efforts include enacting the Recycling of Ships Act, 2019, to establish a ship recycling ecosystem in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). Financial aid of Rs 53.5 crore has been provided to upgrade 115 ship recycling yards to meet HKC standards. Additionally, the Ship-breaking Credit Note Scheme was launched, offering ship owners a credit note equivalent to 40% of the scrap value of a recycled ship. The government is also working towards getting Indian ship recycling yards included in the European Union’s approved list of recycling facilities.
