India is world’s top ship recycler (35.4% share in 2025)
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India became the world’s leading ship recycling nation in 2025, a PIB Backgrounder said on 11 August 2026, citing UNCTAD. Its share rose from 30.1 per cent in 2024 to 35.4 per cent, and volume from 1.86 to 2.99 million gross tonnes. The Alang-Sosiya cluster in Gujarat handles about 98 per cent of India’s ship recycling.
- Global rank
- 1st in 2025 (UNCTAD)
- Share
- 35.4% (2024: 30.1%)
- Volume
- 2.99 million GT (2024: 1.86 million GT)
- Hub
- Alang-Sosiya, Gujarat: about 98% of activity
- Law
- Ship Recycling Act, 2019; Rules 2021; Regulations 2026
- Convention
- Hong Kong Convention in force from 26 June 2025
Ship recycling in India: what happened?
Every ship ends its life somewhere. If it is cut up on a beach without rules, oil, asbestos and toxic paint pollute the coast and workers get hurt. If it is recycled under rules, it becomes a cheap source of steel. India has moved from the first picture towards the second.
- India met the Maritime India Vision 2030 goal of becoming the top ship recycler five years early.
- ₹53.5 crore helped 115 facilities comply with the Hong Kong Convention.
- 35 yards at Alang have applied for EU green-listing; two are in the draft 16th European List.
- The Safety Training and Labour Welfare Institute at Alang has trained over 1.5 lakh workers.
- Other yards: Amar Iron Udyog, Kolkata, and Steel Industrials Kerala Limited (SILK).
What is the legal framework?
| Instrument | Role |
|---|---|
| Ship Recycling Act, 2019 | main law; Directorate General of Shipping is the National Authority |
| Ship Recycling Rules, 2021 | yard authorisation, recycling plans, hazardous material, worker safety |
| Ship Recycling Regulations, 2026 | detailed operational, safety and environmental standards |
| Hong Kong Convention | binding global rules; in force from 26 June 2025 |
| Inventory of Hazardous Materials (IHM) | records hazardous substances on board through a ship’s life |
Why does ship recycling matter?
- It gives ferrous scrap to the steel industry and cuts raw material imports.
- Recycled steel uses much less energy than primary steel, so emissions are lower.
- About 3.50 MMT of steel a year is produced at Alang without mining.
- It supports re-rolling mills, transport and waste management jobs.
What do the numbers show?
| Indicator | Figure |
|---|---|
| Global share 2024 to 2025 | 30.1% to 35.4% |
| Volume 2024 to 2025 | 1.86 to 2.99 million GT (nearly 60% growth) |
| Alang annual capacity | around 6 million GT |
| Planned capacity | about 9 million LDT |
| Workers trained at Alang | over 1.5 lakh |
| Modernisation aid | ₹53.5 crore, 115 facilities |
How does the Ship-breaking Credit Note work?
- Owner recycles an old ship at a compliant Indian yard
- Gets a Credit Note worth 40% of the scrap value
- Uses it for up to 5% of the cost of a new ship
- New ship built at an Indian shipyard
- Links recycling with shipbuilding (SBFA 2.0)
Why does ship recycling in India matter?
| Angle | What to note |
|---|---|
| Circular economy | Steel recovered from ships replaces mined ore. |
| Environment | Regulated yards prevent coastal pollution. |
| Jobs | Large employment in Gujarat and allied industries. |
| Shipbuilding | Credit notes push orders to Indian yards. |
| Global standing | HKC alignment and EU listing open more business. |
What are the challenges in ship recycling in India?
- Worker safety and hazardous waste handling need constant checks.
- Only two yards are in the draft EU list so far.
- Recycling is concentrated in one cluster.
- Global ship supply for scrapping can swing with freight markets.
What should be done next on ship recycling in India?
- Get more yards on the EU list.
- Expand Alang capacity as per the master plan.
- Keep training workers on hazardous materials.
- Use credit notes to boost Indian shipbuilding.
What can Prelims ask on ship recycling in India?
- India: world’s top ship recycler in 2025 (35.4%), per UNCTAD.
- Alang-Sosiya (Gujarat): about 98% of India’s ship recycling.
- Hong Kong Convention: in force from 26 June 2025.
- National Authority under the 2019 Act: Directorate General of Shipping.
- Ex-INS Viraat recycled at Alang (arrived September 2020).
How to write about ship recycling in India in Mains
Practice question (15 marks, 250 words): Ship recycling can be both an environmental hazard and a circular economy opportunity. Discuss with reference to India’s ship recycling sector.
- Intro: India top recycler, 35.4% share.
- Benefits: steel, energy, jobs, shipbuilding link.
- Risks: pollution, worker safety.
- Framework: 2019 Act, Rules, Regulations, HKC, IHM.
- Way forward: EU listing, training, capacity.
How to use this in Mains
- As per PIB (2026-08-11): india became the leading ship recycling nation in 2025; share rose from 30.1% to 35.4%; volume from 1.86 to 2.99 million GT.
- Ship recycling raises worker safety and coastal pollution concerns.
Quotable data pointIndia became the leading ship recycling nation in 2025.
PIB: PIB Backgrounder: ship recycling, 11 Aug 2026
Exam angle
Prelims: Hong Kong Convention.
Practice MCQs
Original practice questions (not PYQs).
The Hong Kong International Convention, which came into force in 2025, deals with
Answer (b) & explanation
PIB Backgrounder, 11 Aug 2026.
Under India's ship recycling law, the National Authority is
Answer (b) & explanation
PIB Backgrounder, 11 Aug 2026.
Questions students ask about this
Which country was the top ship recycler in 2025?
India, with a 35.4 per cent global share, according to UNCTAD.
Where is India's main ship recycling hub?
Alang-Sosiya in Gujarat, which handles about 98 per cent of India's ship recycling.
When did the Hong Kong Convention come into force?
On 26 June 2025.
What is the Ship-breaking Credit Note?
A credit worth 40 per cent of a recycled ship's scrap value, usable for up to 5 per cent of the cost of a new ship built in India.
Keep studying
Go deeper
Official source: PIB: PIB Backgrounder: ship recycling, 11 Aug 2026
facts from cited sources only; faculty review pending