Economy

Ship Recycling in India and Hong Kong Convention

GS3 Infrastructure - MaritimeGS3 EnvironmentPrelims and Mains

In the news since 1 July 2026 · last on 11 August 2026

Why in news
On 11 August 2026, PIB reported that India became the world's top ship recycling nation in 2025, with its global share rising from 30.1% to 35.4%, citing UNCTAD.
What it is
Ship recycling is the safe and environmentally sound dismantling of ships at the end of their life, recovering steel and other materials. India's main hub is the Alang-Sosiya cluster in Gujarat. The sector is governed by the Ship Recycling Act, 2019 and the Hong Kong Convention, which sets binding safety and environmental standards.
Global rank and share
India ranked first in ship recycling in 2025 per UNCTAD. Its share rose from 30.1% in 2024 to 35.4% in 2025.
Hong Kong Convention in force
The Convention came into force on 26 June 2025, making compliance mandatory.
Alang-Sosiya
The Gujarat cluster handles about 98% of India's ship recycling activity.
Hong Kong Convention background
The Convention was adopted in 2009 under the International Maritime Organization (IMO).
Yards seeking EU recognition
More than 30 Indian yards have applied for EU recognition. Six are in the compliance and approval process.
Yards eligible to apply
Three yards have completed all compliance procedures and are eligible to apply for inclusion under the EUSRR.
India's global share
Per UNCTAD estimates, India's share rose from 30.1% in 2024 to 35.4% in 2025.
Joint Working Group
The EU Commissioner proposed a Joint Working Group with the Ministry of Environment and other relevant bodies. The matter will go to EU member states in the autumn session before any final decision.

Don’t confuse with Hong Kong Convention vs Basel Convention: The Hong Kong Convention is an IMO instrument specific to ship recycling. The Basel Convention, under UNEP, governs transboundary movement of hazardous wastes.

Don’t confuse with Ship Recycling Act vs Rules vs Regulations: The Act (2019) is the primary law. The Rules (2021) and Regulations (2026) set procedural, technical and operational details.

Don’t confuse with Basel Convention vs Hong Kong Convention: The Basel Convention (UNEP) controls transboundary movement of hazardous wastes. The Hong Kong Convention (IMO) deals specifically with ship recycling.

Don’t confuse with EUSRR vs Hong Kong Convention: The EUSRR is EU law that lists approved yards for EU-flagged ships. The Hong Kong Convention is an international IMO treaty.

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Each time it was in the news

  1. 11 August 2026

    On 11 August 2026, PIB reported that India became the world's top ship recycling nation in 2025, with its global share rising from 30.1% to 35.4%, citing UNCTAD.

  2. 1 July 2026

    On 1 July 2026, Union Minister Sarbananda Sonowal and EU Commissioner Jessika Roswall reviewed the process for Indian ship recycling yards to be recognised under the EU Ship Recycling Regulation. Three Indian yards have completed compliance and can now apply for inclusion.