Key Details
India’s rise to the top position reflects a combination of regulatory reforms, international compliance standards, yard modernisation and efforts to link ship recycling with domestic shipbuilding.
Key Area | What It Means |
|---|---|
Global Leadership Achieved | India became the world’s largest ship recycling nation in 2025, achieving a Maritime India Vision 2030 target five years early |
Rapid Market Share Gains | India’s global share increased from 30.1% to 35.4% in a single year |
Higher Recycling Activity | Recycling volumes rose from 1.86 million GT to 2.99 million GT in 2025 |
Compliance-Led Growth | 115 recycling yards received support to align with Hong Kong Convention standards |
Link to Shipbuilding | The Ship-breaking Credit Note Scheme connects recycled vessels with new shipbuilding demand |
Next Growth Phase | Alang’s planned expansion could increase national recycling capacity to around 9 million LDT |
Summary
India Is Moving from a Ship Recycling Hub to a Maritime Circular Economy Leader
According to UNCTAD data, India became the world’s leading ship recycling nation in 2025, increasing its share of global recycling activity to 35.4% and surpassing a key target under Maritime India Vision 2030 five years ahead of schedule. The achievement reflects sustained efforts to modernise recycling facilities, improve environmental and safety compliance, and strengthen India’s position in the global maritime economy.
Growth Driven by Modernisation and International Standards
India’s ship recycling volume increased from 1.86 million gross tons in 2024 to 2.99 million gross tons in 2025, making it the largest recycling destination globally. A significant driver has been the implementation of the Recycling of Ships Act, 2019, which aligns India’s regulatory framework with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships.
Government support has helped 115 recycling facilities upgrade infrastructure and compliance systems, strengthening confidence among international ship owners.
Connecting Recycling with Domestic Shipbuilding
A distinctive feature of India’s maritime strategy is the Ship-breaking Credit Note Scheme, which links recycling activity with domestic shipbuilding. Ship owners receive a credit note equivalent to 40% of the scrap value of a recycled vessel, which can be used towards purchasing a new ship built in India.
The scheme seeks to create a circular maritime ecosystem where recycling generates demand for domestic shipyards while supporting resource recovery and industrial activity.
Alang Remains Central to Future Expansion
The Alang Ship Recycling Yard in Gujarat continues to anchor India’s ship recycling industry. Plans are underway to expand national recycling capacity to approximately 9 million light displacement tons (LDT), positioning India to capture a larger share of the global recycling market.
With more than 16,000 vessels expected to reach recycling age globally over the next decade, India sees significant opportunities to expand its role in sustainable maritime recycling.
What is the Hong Kong Convention?
The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships is a global framework developed under the International Maritime Organization (IMO). It establishes standards for worker safety, hazardous material management and environmentally responsible ship recycling practices.
Policy Relevance
Positions India as a global leader in sustainable ship recycling, achieving a Maritime India Vision 2030 target ahead of schedule.
Demonstrates the importance of regulatory reform and international compliance in improving industrial competitiveness.
Creates stronger linkages between ship recycling and domestic shipbuilding through incentive-based policy instruments.
Supports circular economy objectives by recovering steel and other materials from end-of-life vessels.
Strengthens Alang’s role as a strategic maritime industrial cluster with significant future growth potential.
Highlights the growing importance of environmental and worker-safety standards in determining competitiveness in global recycling markets.
Relevant Question for Policy Stakeholders: As India expands recycling capacity and market share, how can it increase domestic value addition from recycled materials while maintaining high standards of environmental compliance and worker safety?
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