India has become the world’s leading ship recycling nation, reaching its Maritime India Vision 2030 target five years ahead of schedule after increasing its share of the global recycling market to 35.4% in 2025.
According to data cited by India’s Ministry of Ports, Shipping and Waterways, the country recycled 2.99 million gross tons of shipping in 2025, a nearly 60% increase compared to 1.86 million gross tons in 2024. The growth pushed India ahead of competing recycling markets and made it the largest ship recycling destination globally by tonnage.
Indian authorities attribute the achievement to a series of maritime policy reforms, financial incentives and investments aimed at modernizing the sector and improving compliance with international environmental and safety standards.
A key role in the industry’s expansion has been played by the Alang ship recycling yards in Gujarat, one of the world’s largest shipbreaking hubs. The government reports that 115 recycling facilities have now been upgraded to comply with the IMO’s Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
To further strengthen the sector, New Delhi has provided financial support for yard modernization and introduced a ship recycling credit scheme. Under the program, shipowners receive a credit note equal to 40% of a vessel’s scrap value, which can be used toward the construction of new ships at Indian shipyards.
India is also seeking inclusion of its recycling facilities on the European Union’s approved list of ship recycling yards, a move that could further increase the country’s attractiveness for international shipowners.
The government expects demand for ship recycling to remain strong over the coming decade. Industry association BIMCO estimates that more than 16,000 vessels could be recycled worldwide during the next ten years as aging fleets are phased out and environmental regulations tighten.
To accommodate future demand, India plans to nearly double its recycling capacity to around 9 million light displacement tons (LDT), while simultaneously expanding its domestic shipbuilding industry. The country aims to capture 5% of the global shipbuilding market by 2030 and rank among the world’s top five shipbuilding nations by 2047.
