India’s Rise as the Global Leader in Ship Recycling
India has officially claimed its place as the world’s leading ship recycling nation, achieving a remarkable 35.4% share of the global market by 2025. This significant milestone, reported by the United Nations Conference on Trade and Development (UNCTAD), demonstrates India’s commitment to sustainable practices and efficient maritime policies.
A Historic Achievement
This accomplishment comes five years ahead of India’s target set in its Maritime India Vision 2030. In 2025 alone, India recycled an impressive 2.99 million gross tonnes (GT) of ships, exhibiting a nearly 60% increase from the previous year’s 1.86 million GT. This surge reflects extensive policy reforms and operational enhancements aimed at fostering a more accessible environment for ship recycling activities.
Global Demand for Ship Recycling
The global landscape for ship recycling is poised for growth, with over 16,000 ships projected to be recycled in the next decade, according to the Baltic and International Maritime Council (BIMCO). With its dominant market share, India is now capable of recycling approximately 500 to 600 ships annually, a number expected to grow as capacities expand.
Policy Reforms Underpinning Success
Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, emphasized that India’s status as the leading ship recycling nation results from years of dedicated policy reforms and compliance with international environmental and safety standards. These reforms not only bolster India’s maritime infrastructure but also position the nation as a global hub for responsible and sustainable ship recycling practices.
The Recycling of Ships Act, 2019
A pivotal piece of legislation, the Recycling of Ships Act, 2019, has aligned India’s ship recycling industry with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). Ratified by India in 2019, this legal framework establishes stringent environmental standards that recycling facilities must adhere to, enhancing safety and ecological responsibility.
Financial Incentives and Support
To stimulate growth within the sector, the Indian government has invested ₹53.5 crore to modernize ship recycling yards. This funding has enabled 115 facilities to meet the standards outlined in the Hong Kong Convention, thus improving operational efficiency and safety. Additionally, the introduction of the Ship-breaking Credit Note Scheme offers ship owners a credit note equivalent to 40% of their vessel’s scrap value, which can be utilized to offset costs for new ships constructed at Indian shipyards. This initiative not only promotes recycling but also bolsters the domestic shipbuilding industry.
Future Prospects and Infrastructure Development
With the expectation of higher demand for ship recycling, India is committed to enhancing its capabilities. Plans are underway to nearly double the capacity of the Alang Ship Recycling Yard, aiming for about 9 million light displacement tonnes (LDT). The Gujarat government’s master plan further aims to improve infrastructure, thereby increasing India’s competitiveness in the global ship recycling market.
International Compliance and Expansion
India is actively seeking to have its ship recycling yards included in the European Union’s approved list of recycling facilities. Achieving this status will open new opportunities for Indian ship recyclers and bolster the nation’s image in international maritime circles.
The Road Ahead
As thousands of ships approach retirement over the next decade, India’s position as the preeminent ship recycling nation appears secure. With ongoing investments in modernization, an increase in recycling capacity, and compliance with global standards, the nation is well-poised to maintain its leading role in the industry for years to come.
(Image for representation purposes only. References: newsonair, the hindu)