In 2025, India's ship recycling industry delivered a standout performance. According to statistics from the United Nations Conference on Trade and Development, India recycled a total of 2.99 million gross tonnes of vessels during the year, a significant increase of 59.7% compared with the 1.86 million gross tonnes recorded in 2024. Its global market share consequently jumped from 30% to 35.4% .

This performance not only cemented India's position at the top globally, but also saw the country achieve its original 2030 target five years ahead of schedule, surpassing traditional rivals such as Bangladesh, Pakistan, and Turkey.

India's Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, attributed this to "sustained policy reforms, the industry's own efforts, and strict adherence to international environmental and safety standards." He particularly noted that the government has placed ship recycling at the core of its national maritime policy reform agenda and has cumulatively invested close to US$5.7 million in fiscal funding to support the modernisation of recycling yards, laying the foundation for the capacity surge.

On the safety and environmental front, India ratified the IMO Hong Kong Convention in 2019, and 115 recycling facilities across the country now meet the Convention's compliance requirements. Concurrently, India is actively working to have its domestic yards included in the EU's list of approved recycling facilities, with a view to further opening up the European market and expanding its international business footprint.

The Baltic and International Maritime Council forecasts that more than 15,000 vessels will be ready for demolition globally over the next decade. Based on India's current 35% market share, it could expect to receive an average of 500 to 600 end-of-life vessels annually. To this end, India plans to nearly double its ship recycling capacity to approximately 9 million light displacement tonnes, and is working with local authorities to advance the expansion of the Alang shipbreaking yards to match future demand.

To further attract shipowners, the Indian government has introduced a credit note scheme: shipowners can receive a credit equivalent to 40% of a vessel's scrap value, which can be used to offset up to 5% of the contract price when ordering a new vessel at an Indian yard. This measure is designed to link the recycling and shipbuilding sectors, thereby boosting the development of India's shipbuilding industry.

The Indian government's broader ambitions include capturing a 5% share of the global shipbuilding market by 2030 and ranking among the world's top five shipbuilding nations by 2047. Officials state that the ship recycling and shipbuilding sectors will work in tandem to become a significant engine of India's industrial economic growth. The Indian government is currently in regular communication with global shipping companies, cash buyers, classification societies, and international organisations, continuously refining industry policies and the operating environment to pave the way for long-term development.