India has achieved great success. The country has emerged as the world’s leading ship recycling nation by 2025, ranking first globally. According to a recent report by the United Nations Conference on Trade and Development (UNCTAD), India’s share in global ship recycling is expected to increase from 30.1% in 2024 to 35.4% in 2025.
According to the report, ship recycling in India is expected to increase to 2.99 million gross tons (GT) in 2025, which is almost 60% more than 1.86 million GT in 2024. With this achievement, the goal of becoming the world’s leading ship recycling nation under the Maritime India Vision (MIV) 2030 has been achieved well ahead of schedule.
‘Strengthening India’s position’
Union Minister of Ports, Shipping and Waterways (MoPSW), Sarbananda Sonowal said, ‘India’s emergence as the world’s top ship recycling nation reflects the success of continuous policy reforms, industry efforts and adherence to international environment and safety standards under the visionary leadership of Prime Minister Narendra Modi. This strengthens India’s position as a global hub for responsible and sustainable ship recycling’.
Recycling of Ships Act, 2019 comes into force
For this, he made many things in India as his base due to which he has reached this position today. The Government of India enacted the Recycling of Ships Act, 2019 to develop a ship recycling ecosystem in line with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified in 2019.
MoPSW launched the Ship-Breaking Credit Note Scheme, under which ship owners get a credit note equal to 40% of the scrap value of the recycled ship. The credit note can be used to pay up to 5% of the value of a new ship built in an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding.
doubling target
The Government of India is actively making efforts to include Indian ship recycling yards in the list of EU approved recycling facilities. There is ongoing engagement with relevant authorities to facilitate approvals. India aims to almost double its ship recycling capacity to 9 million Light Displacement Tonnes (LDT) through the planned expansion of Alang Ship Recycling Yard.
India is increasing its capacity
According to the Baltic and International Maritime Council (BIMCO), more than 16,000 ships are expected to be recycled globally in the next decade. With a current market share of 35.4%, India is well positioned to recycle approximately 500 to 600 ships annually while continuing to expand its ship recycling capacity.
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