India Becomes World’s Top Ship Recycling Nation 

Syllabus: GS3/Economy

Context

• India has become the World’s Top Ship Recycling Nation in the year 2025. 

What is Ship Recycling?

• Ship Recycling is the process of dismantling a vessel’s structure for scrapping or disposal whether conducted at a beach, pier, dry dock or dismantling slip. 
• It includes a wide range of activities, from removing all gear and equipment to cutting down and recycling the ship’s infrastructure.

India’s Ship Recycling Landscape

• As per the latest report by the United Nations Conference on Trade and Development (UNCTAD), India’s share of global ship recycling increased to 35.4 per cent in 2025 from 30.1 per cent in 2024.
• Ship recycling in the country rose significantly to 2.99 million gross tonnes in 2025, up nearly 60 percent from 1.86 million gross tonnes in 2024.
• With this achievement, the target set under Maritime India Vision 2030 to become the world’s leading ship recycling nation has been achieved five years ahead of schedule.
• The Alang-Sosiya ship recycling cluster in Gujarat forms the backbone of the country’s recycling capacity and is the largest ship recycling hub in the world.
  • The cluster accounts for approximately 97% of India’s ship recycling activity.

Regulatory Framework Governing Ship Recycling in India

• Ship Recycling Act, 2019: Provides the overarching legal foundation for regulating ship recycling in India.
  • It gives domestic effect to international standards, designates the Directorate General of Shipping as the National Authority and mandates authorisation, certification, inspection and enforcement mechanisms.
• Ship Recycling Rules, 2021: Operationalise the Act by prescribing procedural and technical requirements including facility authorisation, Ship Recycling Plans, hazardous material management, worker safety, training and reporting obligations.
• Ship Recycling Regulations, 2026: Strengthen implementation through detailed operational, safety and environmental standards, ensuring uniform compliance and effective monitoring.

Key Government Initiatives

• The Government of India 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 in 2019.
• Ship-breaking Credit Note Scheme: MoPSW launched the Ship-breaking Credit Note Scheme, under which ship owners receive a credit note equivalent to 40% of the scrap value of a recycled ship.
  • The credit note can be utilised toward payment of up to 5% of the value of a new vessel built at an Indian shipyard, thereby promoting both ship recycling and domestic shipbuilding.

Challenges in Ship Recycling

• Hazardous Waste Management: Ships contain toxic materials such as asbestos, oil residues, heavy metals, and hazardous chemicals that require safe handling and disposal.
• Infrastructure Constraints: The recycling facilities require modernization and advanced waste-treatment systems to achieve environmentally sound recycling.
• Worker Safety Concerns: Ship dismantling is a high-risk activity involving accidents, fires, explosions, and exposure to harmful substances.
• Global Competition: India faces strong competition from countries such as Bangladesh and Pakistan, which are operating at lower costs.

Concluding remarks

• India’s rise to the top position in global ship recycling is the result of a coordinated strategy focused on sustainability, regulatory reforms, and industry collaboration. 
• With strong future demand, increasing compliance with international standards and continued government support, India is well-positioned to strengthen its leadership in ship recycling while advancing the objectives of the circular economy and sustainable maritime development.

Source: AIR, PIB, MoPSW