India leads world in ship recycling, captures 35.4% global share

According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India increased its share of global ship recycling to 35.4...

What Happened

According to the latest report by the United Nations Conference on Trade and Development (UNCTAD), India increased its share of global ship recycling to 35.4% in 2025, up from 30.1% in 2024.
Ship recycling in India rose to 2.99 million gross tonnes (GT) in 2025, up nearly 60% from 1.86 million GT in 2024.
With this achievement, India has met — five years ahead of schedule — the target set under Maritime India Vision 2030 to become the world's leading ship recycling nation.
The Ministry of Ports, Shipping and Waterways attributed the achievement to policy reforms including financial assistance of Rs 53.5 crore to help 115 ship recycling facilities become compliant with the Hong Kong Convention (HKC) standards.
India now aims to nearly double its ship recycling capacity to approximately 9 million light displacement tonnes (LDT) through expansion of the Alang Ship Recycling Yard in Gujarat.

Static Topic Bridges

Hong Kong International Convention for Safe and Environmentally Sound Recycling of Ships (2009)

The Hong Kong International Convention (HKC) was adopted at a diplomatic conference in Hong Kong, China, in May 2009 under the International Maritime Organization (IMO). The Convention establishes binding standards to ensure that ships being recycled do not pose unnecessary risks to human health, safety, or the environment. Key requirements include that ships carry an Inventory of Hazardous Materials (IHM) — a document listing all hazardous substances on board such as asbestos, heavy metals, and PCBs. Ship recycling facilities must be authorised and must have approved Ship Recycling Plans. The Convention entered into force on 26 June 2025, following the 2023 ratification by Bangladesh and Liberia, which triggered the two-year countdown to enforcement.

Adopted: May 2009 in Hong Kong; under IMO auspices
Entered into force: 26 June 2025 (2 years after entry-into-force threshold met in June 2023)
Key requirement: Inventory of Hazardous Materials (IHM) mandatory for all ships
Scope: design, construction, operation, and end-of-life recycling of ships
115 Indian ship recycling facilities are now HKC-compliant (as of 2025)

Connection to this news: India's 115 HKC-compliant facilities represent a significant regulatory upgrade that simultaneously boosts India's competitiveness for attracting vessels whose flag states require HKC-compliant recycling and addresses longstanding criticism of hazardous working conditions at Indian shipbreaking yards.

Alang Ship Recycling Yard: India's Maritime Industrial Hub

The Alang Ship Recycling Yard, located near Bhavnagar in Gujarat on the Gulf of Khambhat (Cambay), is the world's largest ship breaking yard. Spread over approximately 10 km of coastline, Alang exploits a unique geographical advantage: exceptionally large tidal differences (10–12 metres) allow ships to be beached at high tide for dismantling at low tide, eliminating the need for dry docks. The yard has more than 150 plots and employs an estimated 25,000–50,000 workers. Historically, the yard has faced international criticism for hazardous working conditions, asbestos exposure, and environmental contamination — criticisms that drove the push for HKC compliance.

Location: Bhavnagar district, Gujarat; Gulf of Khambhat coastline
Tidal advantage: 10–12 metre tidal range enables beaching-method recycling
Workforce: estimated 25,000–50,000 workers; predominantly migrant labour
India aims to expand capacity to ~9 million LDT
Gujarat government has prepared a master plan for Alang's future expansion and infrastructure improvement

Connection to this news: The expansion plan for Alang — targeting ~9 million LDT capacity — is what will translate India's current 35.4% market share into long-term global dominance, provided regulatory compliance (HKC) and worker safety standards are maintained.

UNCTAD and Maritime Trade Governance

The United Nations Conference on Trade and Development (UNCTAD) is a permanent inter-governmental body of the UN General Assembly, established in 1964 and headquartered in Geneva. Its mandate covers trade, investment, and development issues, particularly for developing countries. UNCTAD publishes the annual Review of Maritime Transport, which is the primary source of global data on shipping activity, ship recycling, and seaborne trade. India uses UNCTAD data as an authoritative reference for its maritime sector performance metrics.

UNCTAD established: 1964; headquartered in Geneva
Annual Review of Maritime Transport: UNCTAD's flagship publication tracking global shipping
India's ship recycling data: 35.4% global share in 2025 per UNCTAD's latest report
Other major ship recycling nations: Bangladesh, Pakistan, Turkey — India's main competitors
Ship recycling is a USD multi-billion global industry; ships contain valuable scrap steel, copper, aluminium

Connection to this news: The UNCTAD report is the evidentiary basis for India's claimed global leadership — and UNCTAD's methodology (gross tonnage) is the standard international measure used to compare recycling volumes across countries.

Maritime India Vision 2030 and the Blue Economy

Maritime India Vision 2030 is India's comprehensive maritime sector development blueprint, released by the Ministry of Ports, Shipping and Waterways. Its goals include making India a top-tier global maritime nation, doubling cargo handling capacity at major ports, developing 23 waterways, promoting ship building, and achieving global leadership in ship recycling. The broader policy context is India's Blue Economy agenda, which envisions sustainable economic exploitation of ocean resources including fisheries, offshore energy, maritime tourism, and seabed mining. Ship recycling is positioned as a key pillar because it contributes to scrap steel supply (reducing raw material imports), generates employment, and earns foreign exchange.

Maritime India Vision 2030: released 2020; comprehensive 10-year maritime roadmap
Ship recycling target under MIV 2030: global leadership — achieved in 2025, 5 years ahead of schedule
Blue Economy: policy framework for sustainable ocean-based economic development
India's scrap steel supply: ship recycling contributes significantly to the domestic secondary steel market
Rs 53.5 crore provided by government to support HKC compliance upgrades for 115 facilities

Connection to this news: India's 35.4% global share is not an isolated achievement but the direct outcome of the MIV 2030 framework — demonstrating that targeted industrial policy combined with regulatory compliance investment can accelerate sectoral transformation.

Key Facts & Data

India's global ship recycling share: 35.4% in 2025 (up from 30.1% in 2024)
Volume recycled: 2.99 million GT in 2025 (up ~60% from 1.86 million GT in 2024)
Source: UNCTAD Review of Maritime Transport (latest edition)
Target achievement: Maritime India Vision 2030 goal met 5 years ahead of schedule
HKC-compliant Indian facilities: 115 (as of 2025)
Government support: Rs 53.5 crore for facility modernisation
Alang expansion target: ~9 million LDT recycling capacity
Hong Kong Convention entered into force: 26 June 2025
UNCTAD established: 1964, Geneva