One of the key reforms proposed in Merchant Shipping Bill is simplifying vessel registration, including provisions for temporary registration of vessels being recycled. This measure is expected to attract investment in the ship recycling sector and bring operational clarity. For seafarers, the Bill mandates certifications that comply with international standards and outlines welfare measures to enhance safety and competitiveness, said Ajay Srivastava, founder of GTRI.
According to CareEdge, India’s ship recycling industry is expected to grow to 3.8-4.2-million gross tonnage in 2025, as against an estimated 2.3-2.6-million GT in 2024. India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which as per UNCTAD reports stood at 37 per cent. India’s share was around 27 per cent a few years back.
However, Bangladesh has been witnessing some weakness in the sector in the past couple of years. “The internal political disturbances are likely to lead to further weakness and this too can help India attract global vessels. In the next two-three years we expect India to gain market share and surpass Bangladesh,” said Sajani Shah, Assistant Director at CareEdge.
The ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28. Stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards.
However, countries with better infrastructure and green recycling facilities are expected to attract a larger portion of ships in future. “The government should take steps to improve green recycling, secure Euro certification and ensure compliance at a fast pace to attract global vessels,” said Shah.
