India Strengthens Global Lead in Ship Recycling, Plans Major Capacity Expansion

New Delhi, Aug 11: India has emerged as the world’s leading ship recycling nation, marking a significant achievement for the country’s maritime sector and strengthening its position in the global circular economy.

India accounted for 35.4 per cent of global ship recycling in 2025, up from 30.1 per cent in 2024, while the volume of ships recycled in the country rose by nearly 60 per cent to 2.99 million gross tonnes. The achievement has also put India’s Maritime India Vision 2030 target of becoming a global leader in ship recycling ahead of schedule.

The growth reflects the expanding capabilities of India’s ship-recycling industry, particularly the Alang-Sosiya cluster in Gujarat, which remains the centre of the country's recycling activity.

India is now looking to build on this momentum by significantly increasing its recycling capacity. Plans are underway to expand capacity to around 9 million light displacement tonnes, allowing the country to handle a larger share of the world's end-of-life vessels.

The expansion could generate wider opportunities for industries linked to ship recycling, including steel, logistics, engineering, material recovery and other supporting businesses.

Ship recycling also has an important role in the circular economy. Old vessels contain large quantities of steel and other materials that can be recovered and reused, reducing the need for fresh raw materials and supporting more resource-efficient industrial growth.

India’s progress has also been supported by efforts to strengthen safety and environmental standards. The country’s regulatory framework has been aligned with international requirements for responsible ship recycling, helping Indian facilities become more competitive in the global market.

The achievement highlights the growing importance of recycling within India’s broader maritime development strategy. Along with shipbuilding, ports, shipping and logistics, ship recycling can contribute to a more integrated maritime manufacturing ecosystem.

For workers and businesses associated with the sector, higher recycling volumes and planned capacity expansion could create additional economic opportunities while strengthening local industrial activity.

India’s growing global share also comes at a time when the international shipping industry is preparing for a significant increase in vessels reaching the end of their operating lives. This creates an opportunity for India to attract more recycling activity while promoting safer and more environmentally responsible practices.

With its established recycling base, expanding infrastructure and stronger regulatory framework, India is positioning ship recycling as an important part of its maritime economy.

The country's focus is now shifting from achieving global leadership to building greater capacity, improving standards and creating a more modern and sustainable ship-recycling industry.