India’s ship recycling industry has emerged as an important component of the maritime economy, with India accounting for about 35.4% of global ship recycling in 2025. The Alang-Sosiya cluster in Gujarat alone contributes nearly 98% of India’s ship recycling activity.

Significance for India:

• Circular economy: Recovery of steel and reusable components reduces dependence on virgin raw materials and promotes resource efficiency.
• Employment: Generates employment in ship dismantling, steel re-rolling, transport and waste management.
• Industrial development: Recovered steel supports domestic manufacturing and aligns with Atmanirbhar Bharat.
• Environmental benefits: Scientific dismantling and hazardous-waste management can prevent marine and coastal pollution.
• Maritime economy: Strengthens India’s position as a global maritime and ship-recycling hub.

Challenges and sustainability concerns:

Unsafe dismantling can expose workers to asbestos, heavy metals and other hazardous materials. Poor waste management may cause soil, water and coastal pollution, while inadequate safety practices can lead to accidents and health risks.

Measures taken:

• Ship Recycling Act, 2019 provides the statutory framework for authorisation, certification, inspection and enforcement.
• Ship Recycling Rules, 2021 prescribe technical, safety and procedural requirements.
• Ship Recycling Regulations, 2026 strengthen operational, environmental and safety standards.
• Alignment with the Hong Kong International Convention (HKC) promotes globally accepted standards.
• Inventory of Hazardous Materials (IHM) enables identification and safe handling of hazardous substances.
• The Ship-breaking Credit Note Scheme incentivises recycling at compliant Indian yards.

Thus, India’s global leadership must be complemented by worker safety, strict environmental compliance, technological modernisation and circular-economy principles. This can help transform ship recycling into a globally competitive and sustainable component of India’s blue economy.