India is strengthening its ambitions to become the global centre for environmentally responsible ship recycling after emerging as the world’s largest ship recycling nation. Building on this achievement, the government is now focusing on expanding sustainable recycling practices, modernising infrastructure, and integrating the sector with the country’s broader shipbuilding goals.
According to the latest industry estimates, India accounted for 35.4% of global ship recycling activity in 2025, up from 30.1% a year earlier. The volume of recycled ships also witnessed remarkable growth, rising to nearly 2.99 million gross tonnes (GT), reflecting an increase of almost 60% over the previous year. The milestone places India ahead of other major ship recycling countries and marks the early achievement of a key objective under the Maritime India Vision 2030.
The government attributes this progress to sustained policy reforms, improved environmental compliance, and significant investments in modernising recycling facilities. Authorities believe that adopting internationally accepted safety and environmental standards has enhanced India’s reputation as a responsible destination for dismantling end-of-life vessels.
A major focus now is promoting “green” ship recycling, where vessels are dismantled using processes that minimise environmental impact while ensuring worker safety. The implementation of the Recycling of Ships Act and India’s commitment to the Hong Kong International Convention have played an important role in encouraging cleaner and safer recycling practices. Government support has enabled several recycling yards to upgrade their infrastructure and comply with global standards.
The ship recycling industry is centred around Alang in Gujarat, recognised as one of the world’s largest ship recycling hubs. Plans are underway to expand its capacity substantially, allowing India to handle a larger share of the growing global demand for vessel recycling. Industry projections indicate that more than 16,000 ships could require recycling over the next decade, creating significant opportunities for countries with modern and environmentally compliant facilities.
In addition to recycling, the government is seeking to create a circular maritime economy by linking ship dismantling with domestic shipbuilding. Under a proposed incentive framework, ship owners recycling vessels in India could receive financial credits that can be used when placing orders for new ships at Indian shipyards. The initiative is designed to encourage recycling within the country while boosting demand for locally built vessels and strengthening India’s maritime manufacturing ecosystem.
India is also working to secure greater international recognition for its recycling facilities, including compliance with European environmental standards. Achieving wider global certification would allow Indian yards to process a larger number of foreign vessels while reinforcing the country’s image as a leader in sustainable maritime practices.
Experts believe India’s continued investment in cleaner technologies, stronger environmental safeguards, and workforce safety will be crucial in maintaining its competitive edge. As the global shipping industry increasingly embraces sustainability and circular economy principles, India’s growing capabilities in green ship recycling are expected to generate employment, support industrial growth, conserve resources, and contribute to environmentally responsible maritime development.
With policy support, infrastructure expansion, and international collaboration, India is positioning itself not only as the world’s leading ship recycling nation but also as a benchmark for sustainable and green maritime recycling practices in the years ahead.
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