India Becomes World’s Largest Ship Recycling Nation Five Years Ahead Of 2030 Target
Our take
India’s emergence as the world’s largest ship recycling nation, achieving this milestone five years ahead of the 2030 target, represents a significant development with considerable implications for maritime sustainability, global trade, and resource management. The reported 60% increase in recycled gross tonnes (GT) from 2024 to 2025, reaching 2.99 million GT, underscores a rapidly evolving landscape within the maritime sector. Understanding the intricacies of microbial ecosystems within marine environments, as highlighted in [Identifying coral microbiome needles in the microbial haystack: sampling and analysis considerations for prokarya in planulae and polyps], reveals the interconnectedness of ocean health and industrial practices – a point particularly relevant when considering the potential environmental impact of ship recycling. Furthermore, the recent focus on maritime safety and regulatory compliance, as demonstrated by Iran's new transit rules [Iran Introduces 48-hour Advance Notice Rule For Strait Of Hormuz Transits], reinforces the need for stringent oversight in even seemingly routine operations like ship dismantling.
The scale of India’s ship recycling industry is driven by a combination of economic factors – lower labor costs and established infrastructure – and increasing pressure to responsibly decommission end-of-life vessels. Historically, ship recycling has faced scrutiny regarding environmental and labor practices, with concerns over hazardous material handling and worker safety. However, India’s rapid growth suggests a potential shift towards more regulated and modernized processes, although continued vigilance and independent verification are crucial. The sheer volume of vessels being recycled translates to a significant reduction in the demand for new shipbuilding, impacting global steel markets and influencing shipping fleet dynamics. This growth also presents an opportunity to recover valuable resources – steel, aluminum, copper, and other materials – reducing reliance on virgin extraction and contributing towards a circular economy within the maritime industry. The recent incident involving the MV Dali and the Baltimore Bridge [Dali Chief Engineer Admits Hiding ‘Hazardous Condition’ Before Fatal Baltimore Bridge Collision] serves as a sobering reminder of the potential consequences of operational failures and inadequate risk mitigation, something that must be diligently addressed within the ship recycling context.
The environmental benefits of ship recycling are undeniable. Decommissioning obsolete vessels prevents them from becoming environmental hazards, reducing the risk of pollution from oil leaks, discharge of ballast water, and the release of hazardous substances. Utilizing existing materials through recycling significantly lowers the carbon footprint associated with manufacturing new ships and extracting raw materials. However, the process itself must be managed responsibly to prevent pollution from the dismantling of asbestos, heavy metals, and other toxic components. The adoption of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, though not yet universally ratified, provides a framework for improving practices and minimizing environmental impact. Achieving demonstrable improvements in worker safety and environmental performance will be essential to ensuring the long-term sustainability of India’s ship recycling industry and solidifying its position as a global leader.
Looking ahead, the continued growth of India’s ship recycling sector will likely be shaped by evolving international regulations, technological innovations in dismantling processes, and increasing demand for recycled materials. The integration of real-time monitoring and data analytics, key components of ocean intelligence, could offer a more calibrated approach to managing the environmental risks associated with ship recycling. Will India's leadership inspire a global shift towards more sustainable and transparent ship dismantling practices, or will the pressures of cost and efficiency compromise environmental and social safeguards? The answer will depend on continued collaboration between governments, industry stakeholders, and environmental organizations, committed to ensuring that the benefits of ship recycling are realized without compromising the health of our oceans or the wellbeing of those who work within this vital industry.
India has become the world’s leading ship recycling nation after increasing its share of the global market to 35.4% in 2025 from 30.1% in 2024, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD), the Ministry of Ports, Shipping and Waterways (MoPSW) said on Monday.
The achievement means India has reached its Maritime India Vision 2030 goal of becoming the world’s top ship recycling nation five years ahead of schedule.
India recycled 2.99 million gross tonnes (GT) of ships in 2025, up nearly 60% from 1.86 million GT in 2024, the ministry said. It credited the growth to a series of maritime policy reforms and measures aimed at making it easier to do business in the sector.
The milestone comes as demand for ship recycling is expected to rise globally. According to the Baltic and International Maritime Council (BIMCO), more than 16,000 ships are expected to be recycled over the next decade.
With a 35.4% share of the global market, India could recycle around 500 to 600 ships every year while continuing to expand its capacity.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said India’s emergence as the world’s top ship recycling nation reflects years of policy reforms, industry efforts and compliance with international environmental and safety standards.
He added that the achievement strengthens India’s position as a global hub for responsible and sustainable ship recycling.
To strengthen the sector, the government introduced the Recycling of Ships Act, 2019, bringing India’s ship recycling industry in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
The government has also provided ₹53.5 crore to modernise ship recycling yards, helping 115 facilities meet Hong Kong Convention standards.
The ministry also launched the Ship-breaking Credit Note Scheme. Under the scheme, ship owners receive a credit note worth 40% of the scrap value of a recycled vessel.
The credit can be used to pay up to 5% of the cost of a new vessel built at an Indian shipyard, encouraging both ship recycling and domestic shipbuilding.
India is also working to get its ship recycling yards included in the European Union’s approved list of ship recycling facilities.
To prepare for future demand, the government plans to nearly double the capacity of the Alang Ship Recycling Yard to about 9 million light displacement tonnes (LDT).
The Gujarat government has also prepared a master plan to improve infrastructure and increase India’s competitiveness in the global ship recycling market.
With thousands of ships expected to be retired over the next 10 years, the government expects continued investment, higher recycling capacity and internationally compliant facilities to help India maintain its position as the world’s leading ship recycling nation.
References: newsonair, the hindu
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