India became the world’s largest ship recycling nation in 2025 after lifting its share of global demolition activity to 35.4% from 30.1% a year earlier, according to India’s Ministry of Ports, Shipping and Waterways.
Recycling volumes at Indian yards rose nearly 60% to 2.99m gt from 1.86m gt in 2024, allowing the country to hit its Maritime India Vision 2030 target five years early. Union Minister Sarbananda Sonowal said the result reflected “sustained policy reforms, industry efforts and adherence to international environmental and safety standards”.
The ministry pointed to the Recycling of Ships Act, 2019, which aligned India’s regime with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. India ratified the convention in 2019.
The government has provided ₹53.5 crore ($5.7m) to support yard modernisation, helping 115 facilities become compliant with the Hong Kong Convention.
India has also introduced a Ship-breaking Credit Note Scheme, giving shipowners a credit note equal to 40% of the scrap value of a recycled ship. The credit can be used to pay up to 5% of the value of a new vessel built at an Indian shipyard.
The ministry said it is engaging with the Gujarat Maritime Board, the Ship Recycling Industries Association, global shipowners, cash buyers, classification societies and international organisations to address operational challenges.
India is also seeking the inclusion of domestic recycling yards on the European Union’s approved list of ship recycling facilities.
The government aims to almost double recycling capacity to about 9m ldt through the planned expansion of Alang Ship Recycling Yard, backed by a master plan prepared by the Government of Gujarat.
The ministry cited BIMCO projections that more than 16,000 vessels will be recycled globally over the next decade, saying India is positioned to handle about 500 to 600 ships annually while expanding capacity.
The Ministry of Ports, Shipping and Waterways is the Indian government department responsible for ports, shipping, inland waterways and related maritime policy.
