India tops global ship recycling market – five years ahead of schedule

India has claimed the top spot in global ship recycling, capturing 35.4% of the world market in 2025 – surpassing every competitor and hitting its Maritime India Vision 2030 target half a decade early. The country recycled 2.99 million gross tons of shipping last year, up nearly 60% from 1.86 million gross tons in 2024, according to The Maritime Telegraph .

India's Ministry of Ports, Shipping and Waterways credits this leap to a focused set of maritime policy reforms, financial incentives, and infrastructure investments that modernized the sector and raised its compliance with global environmental and safety standards.

The Alang ship recycling yards in Gujarat – among the largest shipbreaking hubs on the planet – drove much of this growth. The government reports that 115 recycling facilities now meet the requirements of the IMO Hong Kong International Convention (HKC), which India ratified in 2019.

New Delhi also launched a ship recycling credit scheme that gives shipowners a credit note equal to 40% of a vessel's scrap value, redeemable toward new ship construction at Indian shipyards. The program ties recycling directly to domestic shipbuilding – a strategic move that benefits operators looking to renew aging fleets while cutting costs.

The outlook stays strong. Industry group BIMCO projects more than 16,000 vessels could enter recycling globally over the next decade as fleets age out and environmental rules tighten. To meet that demand, India plans to nearly double its recycling capacity to around 9 million light displacement tons (LDT), while targeting a 5% share of the global shipbuilding market by 2030.

 

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