- India’s ship recycling volumes surge 60% y-o-y in 2025
- Alang expansion targets 9 million LDT capacity
India has strengthened its position in the global ship recycling landscape, emerging as the world’s leading recycling nation in 2025. The achievement reflects sustained policy support, yard modernisation efforts, and greater alignment with international recycling standards, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said.
The country’s ship recycling volume rose over 60% y-o-y to 2.99 million gross tons (GT) in 2025, compared with 1.86 million GT in the previous year. The achievement enables India to meet its Maritime India Vision (MIV) 2030 target of becoming the world’s top ship recycling nation five years ahead of schedule.
Government reforms support sector growth
The Ministry of Ports, Shipping and Waterways (MoPSW) attributed the growth to policy reforms, infrastructure development, and increasing compliance with international environmental and safety standards.
India strengthened regulatory compliance through the Recycling of Ships Act, 2019, aligned with the Hong Kong Convention (HKC).
To support compliance, the government provided INR 53.5 crore in financial assistance for the modernisation of recycling facilities, helping 115 yards achieve HKC compliance.
Credit scheme promotes recycling and shipbuilding
The Ship-breaking Credit Note Scheme remains one of the key incentives supporting the sector. Under the scheme, shipowners receive credit notes equivalent to 40% of the scrap value of recycled vessels.
The credits can be utilised towards payment of up to 5% of the value of a new vessel built at an Indian shipyard, supporting both ship recycling activity and domestic shipbuilding capacity.
Alang expansion to boost recycling capacity
India is also pursuing the inclusion of domestic recycling yards under the European Union Ship Recycling Regulation (EUSRR) approved facility list, which could improve access to European vessel recycling opportunities.
India aims to increase ship recycling capacity to around 9 million LDT through the planned expansion of the Alang recycling cluster.
Outlook
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 vessels are expected to be recycled globally over the next decade. With a global market share of 35.4% and planned capacity expansion, India remains well-positioned to strengthen its leadership in the global ship recycling market and capture a significant share of future recycling demand.
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