India's Ship Recycling Boom: A Sustainable Surge

India's ship recycling industry is projected to grow significantly, reaching 3.8-4.2 million GT by 2025. The growth is driven by stabilizing scrap prices and increased availability of obsolete ships. Factors such as low debt levels and contract-based operations support this expansion, solidifying India's position in the global market.

India's ship recycling industry is on the verge of a significant expansion, with expectations to reach a gross tonnage of 3.8-4.2 million by 2025, as stated in a recent report by CareEdge. The nation currently dismantles about 33% of global tonnage, trailing only Bangladesh.

According to Sajani Shah, Assistant Director at CareEdge, the industry is set for a major uptick in the coming years, with projections of a 10% compound annual growth rate between 2026 and 2028. Several factors are contributing to this trend, including the cooling off of the Baltic Dry Index and stabilization of heavy melting scrap prices.

India's strategic financial positioning, characterized by low debt levels and contract-based employment within the ship recycling sector, bolsters this anticipated growth. The convergence of stable freight costs and a rise in obsolete ships is expected to further propel the country's standing in the global recycling arena.

(With inputs from agencies.)