Ship recycling industry has been playing a important character in the economy via offering raw materials to steel industry, shipbuilding industry and some other industries in India. Ship-recycling business also creates a huge job prospects for India. Some existing problem like safety of worker, health and working environment issues drawing negative picture of this industry for the country. This paper covers the details of how ship-breaking becoming the successful industry in India, existing law for this industry, life of workers involved, and the impact on environment. It is observed issues such as the existing government laws and enforcement, safety of worker, health and working environment situation, remunerations for worker. Aim of this paper is to make out the problematic issues of this industry and then analyze the problems to help to overcome the challenges involved in ship-recycling industry. A brief overview and prospect of this industry in global perspective has also been focused.