India eyes Bangladesh’s top spot with perks for recycling dying ships

India is planning 40 billion rupees ($454 million) in incentives to bolster its shipbreaking industry, people familiar with the matter said, as it seeks to claw back market share from sector leader Bangladesh and neighbouring Pakistan.

The government will spread these monetary benefits over 10 years starting in 2026, and the cabinet of federal ministers is likely to approve the proposal by the end of September, said the people, who did not want to be identified as the information is not public, reports Bloomberg.

Incentives will include a credit note worth about 40% of the ship's scrap value for owners bringing their obsolete vessels to India. The promissory note, valid for three years, can be used to purchase ships built in the country, the people said.

India will also allow the ship owners to combine multiple credit notes in a single transaction or sell them, they said.

The financial stimulus is aimed at reinforcing India's standing in the global ship recycling market. The country accounted for a third of ships dismantled throughout the world in 2023, next only to the 46% share of Bangladesh, data compiled by the India government showed.