New Delhi: India ship recycling nation 2025 has become a major success story for the country’s maritime sector. India has officially emerged as the world’s largest ship recycling nation in 2025, achieving a key target under Maritime India Vision 2030 five years ahead of schedule. The achievement was highlighted in the latest report by the United Nations Conference on Trade and Development (UNCTAD).
The milestone strengthens India’s position as a global hub for sustainable and environmentally responsible ship recycling while boosting the country’s maritime economy.
United Nations Conference on Trade and Development Report: India Takes the Global Lead in Ship Recycling
According to the latest UNCTAD data, India’s share of global ship recycling increased significantly from 30.1% in 2024 to 35.4% in 2025. At the same time, ship recycling volume jumped by nearly 60%, reaching 2.99 million gross tons (GT) compared to 1.86 million GT in 2024.
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This achievement fulfills the Maritime India Vision 2030 target of becoming the world’s leading ship recycling nation years ahead of the planned timeline.
Key Highlights of the United Nations Conference on Trade and Development Report
| Indicator | 2024 | 2025 |
| Global Ship Recycling Share | 30.1% | 35.4% |
| Ship Recycling Volume | 1.86 Million GT | 2.99 Million GT |
| Growth in Volume | — | Nearly 60% |
| Global Ranking | Among Leaders | No. 1 Position |
Government Reforms Behind the Success
The Ministry of Ports, Shipping and Waterways credited several policy reforms for the rapid growth of the sector.
Major Initiatives Include:
- Implementation of the Recycling of Ships Act, 2019
- Alignment with the Hong Kong International Convention (HKC) for safe and environmentally sound ship recycling
- Financial support of ₹53.5 crore for modernization of ship recycling facilities
- Upgradation of 115 recycling yards to HKC-compliant standards
- Introduction of the Ship-breaking Credit Note Scheme
- Continuous engagement with industry stakeholders and international organizations.
What Is the Ship-Breaking Credit Note Scheme
The government introduced a special incentive to encourage both ship recycling and domestic shipbuilding. Under this scheme:
- Ship owners receive a credit note equal to 40% of the scrap value of a recycled ship.
- The credit note can be used to pay up to 5% of the cost of a new vessel built at an Indian shipyard.
This creates a circular ecosystem where recycling supports new ship construction in India.
United Nations Conference on Trade and Development Report: Alang Ship Recycling Yard to Drive Future Growth
India is now planning the next phase of expansion. The government aims to nearly double ship recycling capacity to around 9 million Light Displacement Tons (LDT) through expansion of the famous Alang Ship Recycling Yard in Gujarat. A comprehensive master plan has already been prepared to improve infrastructure and support future demand.
The Alang-Sosiya cluster already handles the majority of India’s ship recycling activity and is recognized as one of the world’s largest ship recycling hubs.
United Nations Conference on Trade and Development Report: Global Opportunity Ahead
Industry estimates suggest that more than 16,000 ships could be recycled globally during the next decade. With its current market share and growing capacity, India is well-positioned to recycle around 500 to 600 vessels annually in the coming years.
The government is also working toward inclusion of Indian facilities in the European Union’s approved list of ship recycling yards, which could attract additional international business.
Expert Analysis and Insights
India’s rise to the number one position in global ship recycling is not a short-term achievement. It reflects a decade of regulatory reforms, infrastructure upgrades, environmental compliance improvements, and industry modernization.
The most important factor behind this success is India’s shift from low-cost ship dismantling to regulated and sustainable ship recycling. International ship owners increasingly prefer compliant recycling facilities that meet environmental and worker safety standards.
The planned expansion of Alang and the government’s efforts to gain wider international recognition could further strengthen India’s dominance. If global ship replacement cycles accelerate due to decarbonization and aging fleets, India could become the undisputed leader in ship recycling throughout the next decade.
For investors, policymakers, and maritime businesses, this development signals that India’s maritime sector is entering a new phase of global competitiveness and long-term growth.
