India Becomes World’s Top Ship Recycling Nation in 2025 with 35.4% Global Market Share

Context

According to the latest Review of Maritime Transport report by the United Nations Conference on Trade and Development (UNCTAD), India emerged as the world’s leading ship recycling nation in 2025, capturing a dominant 35.4% global market share — up from 30.1% in 2024 — and outperforming Bangladesh, Pakistan, Turkey, and China. India recycled 2.99 million gross tons (GT) of shipping volume in 2025, a sharp 60% surge from 1.86 million GT in 2024. This achievement marks a major maritime milestone driven by policy reforms and ease-of-doing-business initiatives that transitioned India into a global hub for responsible, sustainable, and high-volume ship breaking and recycling. Crucially, India has achieved the Maritime India Vision (MIV) 2030 ship recycling target five years ahead of schedule. The Indian success is anchored in the Recycling of Ships Act, 2019, which aligned domestic yards with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC) — which itself entered into force globally on 26 June 2025. The Ministry of Ports, Shipping and Waterways (MoPSW) under Union Minister Sarbananda Sonowal has disbursed ₹53.5 crore in financial aid to upgrade and certify recycling facilities, helped 115 domestic facilities achieve HKC compliance, rolled out the Ship-breaking Credit Note Scheme (offering ship owners a credit note worth 40% of a recycled ship’s scrap value, usable to offset up to 5% of the cost of building a new vessel at an Indian shipyard), and is actively engaging with European authorities to get Indian yards included in the EU Ship Recycling Regulations (EUSRR) approved facility list.

India’s 2025 Performance

Metric	Value
Global Rank	1st (Top ship recycling nation)
Global Market Share (2025)	35.4% (up from 30.1% in 2024)
Volume Recycled (2025)	2.99 million GT
Volume Recycled (2024)	1.86 million GT
Year-on-Year Growth	+60%
HKC-Compliant Facilities	115

United Nations Conference on Trade and Development (UNCTAD)

• What: A permanent intergovernmental body of the United Nations General Assembly established in 1964 to promote trade, investment, and development for developing countries; publishes flagship reports including Review of Maritime Transport, Trade and Development Report, World Investment Report, and Technology and Innovation Report.
• Where: HQ in Geneva, Switzerland; 195 member states; serves as the focal point for UN deliberations on trade and development.

Hong Kong International Convention (HKC)

• What: An International Maritime Organization (IMO) treaty formally titled the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships; adopted in 2009 at a diplomatic conference in Hong Kong; sets standards for safe and environmentally sound ship recycling, worker safety, environmental protection, hazardous material management (Inventory of Hazardous Materials — IHM); entered into force globally on 26 June 2025 after meeting the ratification threshold (15 states + 40% of world merchant shipping tonnage); India ratified in 2019.
• Where: Adopted at Hong Kong in 2009; administered by the International Maritime Organization (IMO), headquartered in London, UK; applies to ship recycling yards globally, including India’s Alang.

Recycling of Ships Act, 2019

• What: The central Indian legislation that aligned India’s ship recycling regime with the Hong Kong International Convention (HKC); mandates HKC compliance, hazardous material inventory (IHM), worker safety standards, environmental safeguards; came into force after India ratified the HKC in 2019.
• Where: Enacted by Parliament; administered by the Ministry of Ports, Shipping and Waterways (MoPSW); applicable to all ship recycling yards in India.

Ministry of Ports, Shipping and Waterways (MoPSW)

• What: The nodal ministry for ports, shipping, inland waterways, and maritime transport in India; administers Indian Ports Act 1908, Merchant Shipping Act 1958, Inland Waterways Authority of India Act 1985, Major Port Authorities Act 2021, Recycling of Ships Act 2019; implements Maritime India Vision (MIV) 2030, Sagarmala, Maritime Amrit Kaal Vision 2047; current Union Minister: Sarbananda Sonowal.
• Where: HQ at Transport Bhawan, New Delhi; oversees 12 major ports and ~200 minor ports along India’s 7,517 km coastline.

Maritime India Vision (MIV) 2030

• What: A 10-year blueprint released in November 2020 by PM Narendra Modi that sets 150+ initiatives across port modernisation, shipbuilding, ship recycling, port-led industrialisation, coastal shipping, inland waterways, cruise tourism; targets ₹3 lakh crore investment and 20 lakh new jobs; aims to make India a global maritime leader.
• Where: Implemented by MoPSW from New Delhi; coordinates across all coastal states/UTs, Inland Waterways Authority of India (IWAI), Shipping Corporation of India, and major/minor ports.

Global Top Ship Recycling Nations (2025)

Rank	Country	Share
1	India	35.4%
2	Bangladesh	~28%
3	Pakistan	~18%
4	Turkey	~10%
5	China	~5%

Practice MCQs

Q1. With reference to India’s ship recycling performance in 2025, consider the following statements:

1. India emerged as the world’s top ship recycling nation in 2025, with a global market share of 35.4%.
2. India recycled approximately 2.99 million gross tons (GT) of shipping volume, a 60% surge over 2024.
3. The achievement was confirmed in the latest UNCTAD Review of Maritime Transport report.
4. India achieved the Maritime India Vision (MIV) 2030 ship recycling target three years behind schedule.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; India achieved the MIV 2030 ship recycling target five years AHEAD of schedule, NOT three years behind schedule.)

Q2. With reference to the Hong Kong International Convention (HKC), consider the following statements:

1. The HKC was adopted in 2009 in Hong Kong.
2. The Convention sets standards for safe and environmentally sound ship recycling.
3. The HKC formally entered into force on 26 June 2025.
4. The HKC is administered by the United Nations Conference on Trade and Development (UNCTAD).

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the HKC is administered by the International Maritime Organization (IMO), NOT UNCTAD.)

Q3. With reference to India’s Recycling of Ships Act, 2019, consider the following statements:

1. The Act aligned India’s ship recycling regime with the Hong Kong International Convention (HKC).
2. It mandates the maintenance of an Inventory of Hazardous Materials (IHM) and a Ship Recycling Plan.
3. The Act is administered by the Ministry of Ports, Shipping and Waterways (MoPSW).
4. The Act applies only to government-owned vessels and exempts private shipyards.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the Act applies to all ship recycling yards in India, including the private yards at Alang-Sosiya, NOT only government-owned vessels.)

Q4. With reference to the Alang-Sosiya Ship Recycling Yard, consider the following statements:

1. It is the world’s largest ship recycling yard.
2. It is located on the Gulf of Khambhat in Bhavnagar district, Gujarat.
3. The yard is managed by the Gujarat Maritime Board (GMB).
4. The yard recycles only Indian-flagged vessels.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; Alang-Sosiya recycles end-of-life vessels from across the world, NOT only Indian-flagged ships.)

Q5. With reference to the Ship-breaking Credit Note Scheme of the MoPSW, consider the following statements:

1. Ship owners receive a credit note equal to 40% of the recycled ship’s scrap value.
2. The credit note can be applied to offset up to 5% of the cost of building a new vessel at an Indian shipyard.
3. The scheme incentivises both responsible recycling at Indian yards and domestic shipbuilding.
4. The scheme is administered by the Reserve Bank of India.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the scheme is administered by the Ministry of Ports, Shipping and Waterways (MoPSW), NOT the RBI.)

Q6. With reference to UNCTAD and the Maritime India Vision (MIV) 2030, consider the following statements:

1. UNCTAD is a permanent UN intergovernmental body established in 1964, headquartered in Geneva.
2. UNCTAD publishes the Review of Maritime Transport report annually.
3. The Maritime India Vision (MIV) 2030 was launched in November 2020 by PM Narendra Modi.
4. The MIV 2030 is implemented by the Ministry of External Affairs.

How many of the above statements are correct?

(a) Only one (b) Only two (c) Only three (d) All four (e) None

(Statement 4 is wrong; the MIV 2030 is implemented by the Ministry of Ports, Shipping and Waterways (MoPSW), NOT the Ministry of External Affairs.)

Answer Key

1. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because India achieved MIV 2030 target 5 years ahead.
2. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because the HKC is administered by IMO, not UNCTAD.
3. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because the Act applies to all yards, not only government-owned.
4. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because Alang recycles ships from across the world.
5. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because the scheme is administered by MoPSW.
6. (c), Statements 1, 2, 3 are correct; Statement 4 is wrong because MoPSW (not MEA) implements MIV 2030.