The correct answer is option 3, Gujarat. Gujarat is the leading state in India in the "Ship Breaking" industry. Ship Breaking refers to the process of dismantling old and decommissioned ships for recycling and scrap metal extraction. Gujarat has a prominent ship-breaking yard located in Alang, which is considered one of the largest ship-breaking yards in the world. The state`s strategic location along the Arabian Sea and its favorable environmental conditions make it an ideal destination for ship-breaking activities. Gujarat`s ship-breaking industry contributes significantly to the country`s economy and provides employment opportunities to a large number of people in the region.