India is preparing a $454 million incentive package to boost its shipbreaking industry, aiming to take market share from sector leader Bangladesh.
The financial support will be rolled out over 10 years beginning in 2026, with approval expected from the federal cabinet by the end of September, according to people familiar with the plan.
Shipowners bringing obsolete vessels to India will receive credit notes equal to about 40% of the scrap value. The notes, valid for three years, can be used to buy ships built in India, combined in one transaction, or sold.
The measures are designed to reinforce India’s position in global ship recycling, where it dismantled about one-third of vessels in 2023. Bangladesh led with a 46% share, while Pakistan also remains a competitor.