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The Indian government is highlighting strong growth in the country's ship recycling industry in 2025 reproting that it is five years ahead of its plan for the industry's growth. It looks to continue to grow the ship recycling operations, nearly doubling capacity while also looking to use it to drive the growth of its shipbuilding industry.
Citing data from the United Nations Conference on Trade and Development (UNCTAD), the government said that India was ranked first globally in ship recycling in 2025 based on tonnage. It reports a total of 2.99 million gross tons was processed in 2025, which was up nearly 60 percent from the 1.86 million gross tons in 2024. The data shows that India's yards accounted for 35.4 percent of the total tonnage processed in 2025, up from 30 percent in 2024.
The government had set a target to become the world's leading ship recycling nation by 2030, but achieved that goal well ahead of schedule. It reports that it included the ship recycling industry in its maritime policy reforms and has been working to improve the industry. It has provided nearly $5.7 million of financial assistance to support the modernization of the ship recycling yard.
"India's emergence as the world's top ship recycling nation reflects the success of sustained policy reforms, industry efforts, and adherence to international environmental and safety standards," said Minister of Ports, Shipping & Waterways, Sarbananda Sonowal.
The breakers in Alang have become well-known while also controversial for their efforts at recycling ships. India competes primarily against Bangladesh and Pakistan, as well as Turkey, as the primary destinations for end of life shipping. It is a low-tech, highly labor-intensive sector that has drawn attention due to safety and environmental concerns.
India ratified the IMO's Hong Kong Convention (HKC) in 2019, which addresses safety and environmental concerns in the industry. India states that after the upgrades, a total of 115 facilities have become HKC-compliant.
"The Government of India is actively pursuing the inclusion of Indian ship recycling yards in the European Union's approval list of recycling facilities," the ministry reported.
It cites the strong opportunities for the sector, as many have predicted that there will be an increasing purge of old tonnage around the world. Indian officials point to data from the trade group BIMCO, which has said that over the next decade, more than 16,000 vessels are expected to be recycled. Based on Inda's current 35 percent market share, they equate that to 500 to 600 vessels annually.
India aims to nearly double its ship recycling capacity to around nine million light displacement tons. It is working with the local government on the Alang Ship Recycling Yard plan, which is designed to support the growth of the industry. They also report regular conversations with the global shipping companies, cash buyers, class societies, and international organizations to identify challenges and implement solutions.
To further encourage shipowners to recycle and build ships in India, the government introduced a credit note scheme. Owners receive a credit note equivalent to 40 percent of the scrap value of the ship. It can be applied toward payment of up to five percent of the value of a new ship built in an Indian shipyard.
The efforts are part of the larger government plan to grow industrial segments of the Indian economy. They point to the opportunities in both recycling and shipbuilding, targeted to make India a world-class shipbuilder. The goal is to capture five percent of the global shipbuilding market by 2030 and to rank among the top five by 2047.
Fuente: Maritime Executive
