Introduction of Credit Notes for ship recycling will enhance competitiveness of Indian yards

The Indian Union Budget 2025 takes a significant step in recognizing ship recycling as a key contributor to the circular economy. The introduction of Credit Notes for ship recycling, along with the extension of duty exemptions, will enhance the competitiveness of Indian yards. The government has reinforced its commitment to the maritime circular economy. The continuation of BCD exemptions for ship recycling is a welcome move. Given that costs significantly impact profitability, this measure will help Indian yards remain competitive against counterparts in Bangladesh and Pakistan.