Cabinet Approves ₹10,000 Cr Container Manufacturing Scheme

India approves a ₹10,000 crore container manufacturing scheme to expand domestic capacity, reduce import dependence, generate jobs and strengthen maritime logistics, targeting annual production of 7.5 lakh TEUs by developing a globally competitive industry.

India’s Union Cabinet has approved a ₹10,000 crore Container Manufacturing Promotion Scheme to expand domestic production, reduce dependence on imported shipping containers and strengthen the country’s maritime logistics supply chain. The initiative aims to establish a globally competitive manufacturing ecosystem and support India’s growing trade and shipping requirements.

The scheme, announced in the Union Budget 2026-27, has a total outlay of ₹10,000 crore through the financial year 2039-40. It will support the establishment of new manufacturing facilities and the expansion of existing plants, while improving the cost competitiveness of Indian-made containers and encouraging investment across the manufacturing value chain.

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India currently imports a substantial number of empty shipping containers to meet domestic demand and reposition equipment for exports. Developing local production capacity is expected to reduce exposure to international supply disruptions, freight-market volatility and fluctuations in container availability.

The government aims to increase annual domestic container manufacturing capacity approximately tenfold to 7.5 lakh twenty-foot equivalent units (TEUs). The expansion is also intended to create an industry capable of supplying both domestic customers and international markets.

The scheme includes four components: interest subsidy, operational expenditure assistance, testing and certification support, and land-leasing assistance. The largest allocation, ₹8,891 crore, is earmarked for operational expenditure support to improve the price competitiveness of containers manufactured to global shipping standards. Another ₹859 crore will provide a 3% annual interest subsidy on eligible term loans for setting up new facilities and expanding existing manufacturing capacity.

The government has allocated ₹150 crore for testing and certification infrastructure, including facilities for dynamic longitudinal impact testing. These measures are designed to improve manufacturing quality, support compliance with international standards and encourage investment in specialised equipment and related industries.

The initiative is expected to generate approximately 3,000 direct jobs and more than 50,000 indirect jobs across container manufacturing and allied sectors. These include suppliers of specialised steel, corner castings, wooden frames, paints and other components required for container production.

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The scheme also complements broader efforts to strengthen India’s maritime infrastructure and logistics capabilities. The proposed Bharat Container Shipping Line, involving public-sector entities and other stakeholders, is expected to support domestic container procurement alongside the development of a container vessel fleet. In July 2026, shipping company Maersk also placed an additional order for 1,000 Indian-made containers, reflecting emerging demand for locally manufactured products.