India Ranks First Globally in Ship Recycling for 2025
India secured the top global position in ship recycling for 2025, capturing a dominant 35.4% market share. Driven by extensive maritime policy overhauls and business-friendly governance, the country expanded its dismantling volumes dramatically, outstripping international competitors and achieving its long-term sectoral targets well ahead of schedule.
Key Highlights
- India’s global share in ship recycling rose to 35.4% in 2025, up from 30.1% in 2024.
- Total recycled volume reached 2.99 million gross tons, representing a 60% year-over-year surge.
- Policy interventions transformed 115 yards to comply with international safety and environmental benchmarks.
- Planned expansions at the Alang yard aim to elevate annual capacity to 9 million light displacement tons.
The nation emerged as the international leader in ship demolition during 2025, claiming the number one spot worldwide. Data from the United Nations Conference on Trade and Development indicates that India’s portion of the global recycling market escalated to 35.4% in 2025, up from 30.1% during the prior calendar year.
Domestic dismantling facilities processed 2.99 million gross tons in 2025. This volume marks a massive growth of nearly 60% compared to the 1.86 million gross tons recorded in 2024. The milestone satisfies the core objective of the Maritime India Vision 2030 years before its initial target date.
This rapid expansion stems directly from legislative upgrades and administrative simplifications introduced by the administration under Prime Minister Narendra Modi.
Sarbananda Sonowal, the Union Minister of Ports, Shipping & Waterways, noted that climbing to the pinnacle of global ship recycling highlights successful policy reforms and strict adherence to environmental and worker safety standards. He added that the milestone cements the country’s status as a sustainable industrial hub.
To build an ecosystem compliant with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, the state implemented the Recycling of Ships Act in 2019, the same year it validated the global treaty.
Capital injections totaling 53.5 crore rupees supported infrastructure upgrades across local production sites, enabling 115 independent demolition yards to achieve official compliance with international treaty standards.
The ministry also introduced the Ship-breaking Credit Note Scheme, giving vessel owners a credit worth 40% of the scrap value from their dismantled assets. This credit covers up to 5% of the cost of building new commercial hulls at domestic shipyards, boosting both dismantling and construction lines.
Government representatives maintain routine dialogue with the Gujarat Maritime Board, the Ship Recycling Industries Association, international transport lines, cash buyers, and classification bureaus to eliminate operational bottlenecks.
Officials are also lobbying for local yards to join the approved list of recycling facilities maintained by the European Union, keeping up diplomatic talks to secure these critical regulatory clearances.
Long-term plans involve doubling domestic breaking capacity to approximately 9 million light displacement tons by expanding infrastructure at the Alang Ship Recycling Yard. The regional government of Gujarat has drafted a master plan to upgrade logistics and improve global market standing.
Projections from the Baltic and International Maritime Council indicate that more than 16,000 commercial vessels will face retirement over the coming 10 years. Holding more than a third of the market, local facilities remain positioned to process 500 to 600 hulls each year as capacities grow.
The ascension to this premier rank reflects a unified plan balancing green protocols, regulatory updates, asset construction, and industry alignment. Sustained public backing ensures the country will anchor its top position while feeding raw materials back into the circular economy.
| Metric | 2024 | 2025 | Growth / Target |
|---|---|---|---|
| Global Market Share | 30.1% | 35.4% | +5.3% |
| Recycled Volume (Gross Tons) | 1.86 million | 2.99 million | ~60% increase |
| Compliant Yards | β | 115 | Fully Certified |
| Future Capacity Target (LDT) | β | β | 9 million |
Future Outlook
As global maritime mandates tighten, the next decade presents a massive volume of vessel retirements. With 16,000 ships heading to scrap heaps, the expansion of the Alang facility remains central to capturing this upcoming demand. Attaining European Union recognition will be the definitive next step to unlocking premium Western fleets and solidifying long-term industrial dominance.
FAQs
What is India’s current global market share in ship recycling?
India holds a dominant 35.4% of the global ship recycling market as of 2025, which places the country as the world leader in the industry.
How much ship tonnage did India recycle in 2025?
Domestic recycling facilities processed 2.99 million gross tons in 2025, achieving a volume expansion of nearly 60% over the previous year’s total.
What is the purpose of the Ship-breaking Credit Note Scheme?
The program grants vessel owners a credit equal to 40% of their dismantled ship’s scrap value, which can offset up to 5% of the cost of constructing a new vessel at an Indian shipyard.
