The Union Cabinet has approved the ₹10,000 crore (around $1.05bn) Container Manufacturing Promotion Scheme to expand domestic production and reduce dependence on imported shipping containers. The scheme comes as the government looks to build a stronger domestic maritime ecosystem.
China dominates the global container manufacturing industry, accounting for more than 90% of world supply. By developing a competitive domestic container manufacturing ecosystem, the government aims to strengthen India’s position in international trade while supporting the broader Make in India initiative.
The scheme was announced in the Union Budget 2026-27, and has a total outlay of Rs.10,000 crore over 13 years, up to FY 2039-40. It will support new manufacturing facilities and the expansion of existing container manufacturing units.
With incentives for manufacturing, quality testing, infrastructure and operational costs, the scheme aims to make Indian-made containers globally competitive.
“This will strengthen domestic manufacturing capabilities, reduce import dependence and enhance the resilience of our maritime and logistics supply chains,” said Sarbananda Sonowal, India’s minister of ports, shipping & waterways.
Among the major components is Interest Subvention Assistance (ISA) with a financial outlay of Rs 859 crore to provide Interest subvention of 3% per annum on eligible term loans (capital loans) availed by container manufacturers for setting up greenfield container manufacturing facilities and Brownfield expansion of existing container manufacturing capacities.
It also has operational expenditure assistance (OEA) with a financial outlay of Rs 8,891 crore to provide financial assistance for all containers manufactured as per global shipping standards and sold by eligible container manufacturers.
This would help bridge the cost gap and improve the competitiveness of domestically manufactured containers, according to an official government statement.
Another component is testing and certification assistance with a financial outlay of Rs 150 crore to support setting up of common facilities such as Dynamic longitudinal impact testing, etc.
This will increase annual domestic container manufacturing capacity by around ten-fold, up to 7.5 lakh TEUs, create an internationally competitive manufacturing base, with potential to position India as a global export hub for quality shipping containers, and strengthen resilience of India’s maritime and logistics supply chains, according to the announcement.
The scheme aims to generate an estimated 3,000 direct jobs and over 50,000 indirect jobs, while supporting ancillary industries such as corner castings, specialised steel, wooden frames and paints.
