India’s Ship Recycling Industry Gains Momentum as Hong Kong Convention Compliance Drives Growth

According to UNCTAD data, India recycled 2.99 million gross tonnes (GT) of ships in 2025, marking a 60% increase from 1.86 million GT in 2024. The sharp rise reflects growing confidence in India’s recycling capabilities as yards upgrade their facilities to meet international environmental and safety standards.   The industry’s transformation has been driven by significant investments in compliance with the Hong Kong Convention, which establishes global benchmarks for safe and environmentally sound ship recycling. At Alang, Gujarat, the world’s largest ship recycling cluster, 115 of the 130 operational recycling yards have already achieved HKC compliance. According to Anand Hiremath, Chief Sustainability Officer at GMS, Dubai, each yard has invested between ₹3 crore and ₹6 crore to upgrade infrastructure and processes. This translates into an estimated ₹350–700 crore in cumulative investments across the industry.      Industry stakeholders believe India is now well positioned to move beyond being the world’s largest ship recycling destination by volume. With modernised facilities and internationally recognised environmental standards, the country has the opportunity to emerge as a global hub for high-value, environmentally compliant and sustainable ship recycling.      The continued adoption of HKC standards is expected to attract more quality tonnage from global shipowners seeking responsible end-of-life vessel recycling, further strengthening India’s role in the global maritime circular economy.