India’s Union Cabinet has approved the Container Manufacturing Promotion Scheme, a Rs 10,000 crore programme designed to expand domestic production and reduce the country’s reliance on imported shipping containers.
According to two official government announcements, the programme will run from the 2027-28 financial year until 2039-40. It will support new manufacturing plants and the expansion of existing facilities.
The Indian government aims to increase annual container manufacturing capacity almost tenfold. Capacity is expected to rise from approximately 70,000 TEU today to 750,000 TEU.
The programme was initially announced as part of India’s Union Budget for 2026-27.
Support for new and existing factories
The scheme includes Rs 859 crore of interest support. Eligible manufacturers will receive a 3% annual interest subsidy on term loans used for new factories or capacity expansions.
New manufacturing facilities must have annual capacity of at least 100,000 TEU. Expansion projects at existing plants must add at least 25,000 TEU annually.
A further Rs 8,891 crore will support operational expenditure. The assistance will apply to eligible containers manufactured according to international shipping standards and sold by approved producers.
The government said this support would help close the cost gap between domestic and imported containers.
Manufacturers will initially need to achieve domestic content of at least 70%. This requirement will increase to 90% from the 2032-33 financial year.
The programme also allocates Rs 150 crore for testing and certification infrastructure. This includes common facilities for processes such as dynamic longitudinal impact testing.
In addition, land at major ports may be leased to eligible manufacturers at 25% of the notified rate.
Container demand expected to rise
India handled approximately 24 million TEU of container traffic in 2024. Under the government’s Maritime Amrit Kaal Vision, this figure is projected to reach 175 million TEU by 2047.
The government expects demand to come from the replacement of existing containers, the planned Bharat Container Shipping Line and new ports such as Vadhavan and Galathea Bay.
The scheme is expected to generate around Rs 75,000 crore in economic output by the 2039-40 financial year. It could also create approximately 3,000 direct jobs and more than 50,000 indirect positions.
Supporting industries include specialised steel, corner castings, wooden flooring and coatings.
“Containers are the backbone of our trade. By making them in India, we strengthen the maritime logistics supply chain on which our ports, our exporters and our shipping lines depend,” said Sarbananda Sonowal, India’s Union Minister of Ports, Shipping and Waterways.
An inter-ministerial steering committee, chaired by the Secretary of the Ministry of Ports, Shipping and Waterways, will approve the scheme’s guidelines and financial assistance.