India Becomes the World's Leading Ship Recycling Nation in 2025

On June 22, 2026, India was ranked as the world's number one ship recycling nation for the year 2025. According to UNCTAD, India's share in global ship recycling went up to 35.4% in 2025 from 30.1% in 2024. India recycled 2.99 million gross tons (GT) of ships in 2025, nearly 60% more than the 1.86 million GT recorded in 2024. This also means India achieved its Maritime India Vision (MIV) 2030 ship recycling target five years before the deadline. The Alang Ship Recycling Yard in Gujarat is India's main ship-breaking center. Union Minister Sarbananda Sonowal credited this success to policy reforms under Prime Minister Narendra Modi.

Key Government Initiatives to strengthen India's ship recycling ecosystem

The Ministry of Ports, Shipping, and Waterways (MoPSW) has undertaken several initiatives:

1. HKC Compliance—India passed the Recycling of Ships Act, 2019, based on the Hong Kong International Convention (HKC). India ratified this convention in 2019. The government gave ₹53.5 crore to upgrade ship recycling yards. This helped 115 yards become HKC-compliant.
2. Ship-breaking Credit Note Scheme: Ship owners who recycle a ship get a credit note worth 40% of the ship's scrap value. This can be used to pay up to 5% of the cost of a new ship built in India.
3. Stakeholder Engagement: MoPSW works closely with the Gujarat Maritime Board, Ship Recycling Industries Association, shipping companies, and global bodies to solve industry problems.
4. EU Approval Push: India is working to get its recycling yards listed on the European Union's approved facilities list under the EU Ship Recycling Regulations (EUSRR).
5. Alang Yard Expansion: India plans to nearly double its capacity to 9 million LDT by expanding the Alang yard. The Gujarat government has already made a master plan for this.
6. Strong Growth Prospects: According to BIMCO, over 16,000 ships will be recycled worldwide in the next ten years. With a 35.4% share, India can recycle 500 to 600 ships every year going forward.
7. A Sustainable Ship Recycling Future: India's top position in ship recycling came from a mix of good laws, government support, infrastructure upgrades, and teamwork with industry. The goal going forward is to keep this lead while also protecting the environment and workers.

What is Ship Recycling?

When a ship gets too old to sail, it is sent to a yard where workers dismantle it piece by piece. The steel, metal, and other parts are then sold or reused. This process is called ship recycling or ship-breaking. It helps reduce waste and supports the circular economy.