India has emerged as the world's top ship recycling nation in 2025—five years ahead of its planned target of 2030, in line with the Maritime India Vision 2030.
According to the latest data from the United Nations Conference on Trade and Development (UNCTAD), India's share in global ship recycling increased from 30.1 per cent to 35.4 per cent.
This reflects a jump from 1.86 million gross tonnes (GT) in 2024 to 2.99 million GT just a year later, marking a major milestone for the country's maritime sector.
In that regard, here are five key policy moves that shaped this year-on-year boost in ship recycling, as the global maritime industry prepares to recycle more than 16,000 vessels over the next decade:
Hong Kong Convention compliance
The Centre enacted the Recycling of Ships Act 2019 to develop a ship recycling ecosystem aligned with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), which India ratified that year.
In that regard, financial assistance of ₹53.5 crore from the Centre has helped 115 facilities to become HKC-compliant.
Shipbreaking Credit Note Scheme
Established with a ₹4,001 crore purse by the Ministry of Ports, Shipping and Waterways (MoPSW) under the National Shipbuilding Mission, this scheme enables ship owners to get a credit note equivalent to 40 per cent of the scrap value of a ship recycled in India.
Further, this credit note can then be utilised for a discount of up to 5 per cent of the value of a new vessel built at an Indian shipyard—a move to link the Shipbreaking Credit Note Scheme with domestic shipbuilding.
Stakeholder engagement
The MoPSW regularly engages with various stakeholders to identify challenges and implement targeted solutions in the field of ship recycling.
The stakeholders involved are the Gujarat Maritime Board (GMB), the Ship Recycling Industries Association, global shipping companies, cash buyers, classification societies and international organisations.
Expansion of Gujarat's Alang recycling yard
The planned expansion of the Alang ship recycling yard in Gujarat is a part of India's aim to nearly double its ship recycling capacity to about 9 million light displacement tonnes (LDT).
The state government has already prepared a master plan for this infrastructural push, factoring in future demand.
Push for European Union Ship Recycling Regulations (EUSRR) inclusion
India has been pushing for its ship recycling yards in the European Union Ship Recycling Regulations (EUSRR), specifically in its approved list of recycling facilities.
The EUSRR applies to ships on international voyages, of 500 GT and above, flying the flag of a Member State or the Flag of a third country under the conditions of Article 12 of the Regulation.
The EUSRR does not apply to warships, naval auxiliary, or other ships owned or operated by a state and used, for the time being, only on government non-commercial service.
It also does not apply to ships less than 500 GT, or those vessels that only operate in waters subject to the sovereignty or jurisdiction of the Member State whose flag the ship is flying, throughout their life.
By "ships", the EUSRR refers to all vessels of any type whatsoever operating or having operated in the marine environment including submersibles, floating craft, floating platforms, self-elevating platforms, FSUs and FPSOs, as well as ships stripped of equipment or being towed.
