India Achieves Maritime India Vision 2030 Target Five Years Ahead by Becoming the World's Leading Ship Recycling Nation in 2025

India has emerged as the world's leading ship recycling nation in 2025, achieving a major target of the Maritime India Vision (MIV) 2030 five years ahead of schedule. According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India has secured the top global position in ship recycling.

Key Findings of the Report

¨     India's share in global ship recycling increased from 30.1% in 2024 to 35.4% in 2025.

¨     Ship recycling volume in India recorded an impressive 60% increase, rising from 1.86 million Gross Tonnage (GT) in 2024 to 2.99 million GT in 2025.

¨     India surpassed all other countries to become the largest ship recycling nation in the world.

¨     According to the Baltic and International Maritime Council (BIMCO), more than 16,000 ships are expected to be recycled globally over the next decade.

¨     With its current market share, India is well-positioned to recycle approximately 500–600 ships annually in the coming years.

Key factors behind this achievement

¨     Policy Reforms: India has implemented the ‘Recycling of Ships Act, 2019’, which aligns with the ‘Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships’ (HKC).

¨     Modern Infrastructure: The government has provided financial assistance of ₹53.5 crore for the modernization of ship recycling yards, enabling 115 facilities to become HKC-compliant.

¨     Incentive Schemes: A ‘Ship-breaking Credit Note Scheme’ has been launched, under which ship owners receive 40% of the recycled ship's scrap value as a credit note; this can be utilized for new ship construction at Indian shipyards.

¨     Expansion Plans: The Alang ship recycling yard in Gujarat is being expanded, with the aim of reaching a total recycling capacity of approximately 9 million Light Displacement Tonnage (LDT).

Government of India Initiatives

¨     Recycling of Ships Act, 2019: Enacted to align India’s ship recycling ecosystem with the ‘Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships’ (HKC). India ratified the HKC in 2019. Its objective is to ensure environmentally sound and safe ship recycling practices.

¨     Modernization of Ship Recycling Yards: Financial assistance of ₹53.5 crore was provided for yard modernization. This helped 115 ship recycling facilities become HKC-compliant.

¨     Credit Note Scheme for Ship-breaking: Ship owners receive a credit note equivalent to 40% of the scrap value of the recycled ship. This credit note can be used to pay up to 5% of the cost of a new ship built in an Indian shipyard. This promotes both ship recycling and domestic shipbuilding.

¨     Inclusion in the list of EU-approved recycling facilities: The government is making efforts to include Indian ship recycling yards in the list approved under the European Union Ship Recycling Regulation.

¨     Continuous engagement with European authorities is underway to facilitate this approval.

¨     Expansion of Alang Ship Recycling Yard: Planned expansion of the Alang ship recycling yard. The goal is to increase national recycling capacity to approximately 9 million Light Displacement Tonnage (LDT). The Gujarat government has prepared a comprehensive master plan to upgrade infrastructure and meet future demand.

Maritime India Vision (MIV) 2030: Launched by the Ministry of Ports, Shipping and Waterways in 2021 as a roadmap to transform India into a leading global maritime nation. It focuses on port modernization, shipping, shipbuilding, inland waterways, logistics efficiency, sustainability, and job