India's Emergence as a Global Leader in Ship Recycling and Shipbuilding
Key Points
India has emerged as the world's largest ship recycling nation, a significant development for UPSC aspirants focusing on General Studies Paper 3, which covers economic development and infrastructure. Last Updated: 29-06-2026
Key Facts About India's Ship Recycling and Shipbuilding
- India's share of global ship recycling increased from 30.1% in 2024 to 35.4% in 2025.
- The country recycled 2.99 million gross tonnes (GT) of ships, marking a nearly 60% increase from the previous year.
- Under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, India aims to be among the top 10 global shipbuilding nations by 2030 and the top five by 2047.
- The Recycling of Ships Act, 2019, aligns India with the Hong Kong International Convention for safe ship recycling.
- The Ship-breaking Credit Note Scheme provides ship owners a credit note equivalent to 40% of the scrap value of a recycled ship.
- The Shipbuilding Financial Assistance Scheme (SBFAS) offers 15% to 25% financial assistance to domestic yards.
- The Maritime Development Fund (MDF) is a Rs 25,000 crore vehicle for providing long-term, low-cost capital.
India's Strategic Maritime Growth
India's emergence as a leader in ship recycling and its strategic push in shipbuilding are crucial for achieving its economic and strategic goals. The country aims to enhance its maritime capabilities, contributing to economic growth and national security. With the Maritime India Vision 2030, India is set to improve its global ranking and strengthen its maritime infrastructure.
UPSC Relevance
GS Paper 3: Economic Development, Infrastructure, Energy, Ports, Roads, Airports, Railways, etc.
Prelims: Questions could focus on India's ranking in ship recycling, key schemes like SBFAS, and the Recycling of Ships Act, 2019.
Mains: Discuss the impact of shipbuilding on economic growth and maritime security. Analyze India's strategic partnerships in shipbuilding.
FAQ Section
- What is India's position in global ship recycling? India is the world's largest ship recycling nation, with a significant increase in its global share in recent years.
- Why is shipbuilding important for India? Shipbuilding is vital for enhancing maritime security, generating employment, and positioning India as a global maritime leader.
- What are the key features of the Shipbuilding Financial Assistance Scheme (SBFAS)? SBFAS provides financial assistance ranging from 15% to 25% to domestic shipyards to offset cost disadvantages against foreign competitors.
Detailed Coverage
- India's ship recycling share increased from 30.1% in 2024 to 35.4% in 2025.
- Recycled 2.99 million gross tonnes of ships in the past year.
- Aim to rank among the top 10 global shipbuilding nations by 2030.
- Aligned with the Hong Kong Convention for safe ship recycling.
- Implemented the Ship-breaking Credit Note Scheme for ship owners.
- SBFAS provides financial assistance to domestic shipyards.
- Focus on expanding capacity through Shipbuilding Development Scheme.
- Established the Maritime Development Fund for low-cost capital.
- South Korea is aiding in developing India's first mega shipyard.
- Technology transfer from South Korea enhances local ship design.
- Building a localized supply chain for marine equipment.
- Collaboration in naval vessel manufacturing boosts defense production.
- Addressing high capital costs and financial constraints is crucial.
- Need to replicate South Korea’s cluster development approach.
- Focus on integrating recycling and building for supply chain efficiency.
- Strengthening the shipbuilding sector is vital for India's economic goals.