India Becomes World's Top Ship Recycling Nation with 35.4% Global Market Share

Detailed Summary

India has emerged as the world's leading ship recycling nation in 2025, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD), announced in the third week of June 2026. India's share of global ship recycling increased to 35.4% in 2025, up from 30.1% in 2024. Ship recycling in India rose to 2.99 million gross tons (GT) in 2025 — an increase of nearly 60% from 1.86 million GT in 2024. This achievement marks the fulfilment of the Maritime India Vision (MIV) 2030 target of becoming the world's top ship recycling nation, achieved well ahead of the 2030 deadline. The Government of India enacted the Recycling of Ships Act, 2019, aligned with the international Hong Kong Convention.

Historical Background

India has been a major player in ship recycling for decades, with Alang in Gujarat's Bhavnagar district being the world's largest ship-breaking yard. Ship recycling involves the dismantling of old vessels to recover steel and other reusable materials. It is a highly labour-intensive industry, providing employment to hundreds of thousands of workers. However, earlier practices raised concerns about worker safety and environmental pollution, prompting regulatory reforms.

Key Policy Reforms

• Recycling of Ships Act, 2019: Enacted to align India with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC). India ratified HKC in 2019.
• Ship Recycling Regulations, 2026: Strengthen implementation through detailed operational, safety, and environmental standards.
• Ship-breaking Credit Note Scheme: Ship owners receive a credit note equal to 40% of the scrap value of a recycled ship, redeemable toward 5% of the value of a new vessel built at an Indian shipyard — promoting both recycling and domestic shipbuilding.
• Maritime India Vision (MIV) 2030: India's comprehensive maritime policy roadmap launched in 2021, targeting transformation into a global maritime powerhouse.

Key Statistics

Tamil Nadu Relevance

While Alang (Gujarat) is the hub of ship recycling in India, Tamil Nadu's ports — particularly Ennore Port (now Kamarajar Port), Chennai Port, and Tuticorin Port — play a significant role in maritime trade and shipping. The growth of India's maritime sector directly benefits Tamil Nadu's port-based economy and employment. Tamil Nadu's coastline of 1,076 km is one of the longest in India.

Environmental Relevance

Ship recycling, if done unsafely, releases hazardous materials like asbestos, heavy metals, PCBs, and oily bilge water. The Hong Kong Convention (HKC) mandates safe and environmentally sound recycling practices. India's compliance with HKC standards makes its ship recycling industry globally competitive and environmentally responsible. Green Ship Recycling is a priority under India's circular economy goals.

Organisations and Reports

• UNCTAD (United Nations Conference on Trade and Development) — Released the report on global ship recycling. HQ: Geneva, Switzerland.
• Ministry of Ports, Shipping and Waterways (MoPSW) — Nodal ministry for ship recycling policy in India.
• Hong Kong International Convention (HKC) — International instrument governing ship recycling, adopted in 2009, entered into force globally in 2025.

Important Acts

• Recycling of Ships Act, 2019
• Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC), 2009
• Maritime India Vision (MIV) 2030

Related Static GK

Alang, Bhavnagar (Gujarat) — World's largest ship recycling yard. India's coastline: 7,516.6 km. India has 13 major ports. Kamarajar Port (Ennore, Tamil Nadu) is India's first major port set up as a corporate entity. Tamil Nadu has 4 major ports: Chennai, Kamarajar (Ennore), V.O. Chidambaranar (Tuticorin), and Nagapattinam. Ship recycling also involves the concept of "circular economy" — reusing and recycling materials rather than disposing them.

Important Terms and Definitions

• Ship Recycling: The process of dismantling obsolete ships to recover and reuse components and materials.
• Gross Ton (GT): A measure of the enclosed volume of a ship, not its weight. Used in ship recycling statistics.
• Hong Kong Convention (HKC): An international treaty for environmentally safe ship recycling, adopted in Hong Kong in 2009.
• Credit Note Scheme: A financial incentive where ship owners receive credit for recycling old ships, redeemable for building new ones at Indian shipyards.

Exam-Oriented Notes

• India is now the world's No. 1 ship recycling nation (as of 2025 data).
• India's share: 35.4% of global ship recycling.
• Volume: 2.99 million gross tons in 2025.
• Report by: UNCTAD.
• Target achieved early: Maritime India Vision 2030 goal.
• Key law: Recycling of Ships Act, 2019.
• Alang (Gujarat) — world's largest ship-breaking yard.

3 TNPSC-Style MCQs

Q1. According to the UNCTAD report released in June 2026, what was India's share of global ship recycling in 2025?

• A) 25.4%
• B) 30.1%
• C) 35.4%
• D) 40.2%

Answer: C) 35.4%
Explanation: India's share of global ship recycling increased to 35.4% in 2025, up from 30.1% in 2024.

Q2. Where is the world's largest ship recycling yard in India located?

• A) Chennai, Tamil Nadu
• B) Kandla, Gujarat
• C) Alang, Bhavnagar, Gujarat
• D) Visakhapatnam, Andhra Pradesh

Answer: C) Alang, Bhavnagar, Gujarat
Explanation: Alang in Bhavnagar district of Gujarat is the world's largest ship-breaking and recycling yard.

Q3. Which Act enacted by the Government of India governs ship recycling in alignment with the Hong Kong Convention?

• A) Merchant Shipping Act, 1958
• B) Recycling of Ships Act, 2019
• C) Environmental Protection Act, 1986
• D) Maritime Security Act, 2021

Answer: B) Recycling of Ships Act, 2019
Explanation: The Recycling of Ships Act, 2019, aligned India's ship recycling regulations with the international Hong Kong Convention for safe and environmentally sound recycling.