THEBUSINESSBYTES
BUREAU
NEW
DELHI, OCTOBER 28, 2026
The Union Cabinet,
chaired by Prime Minister Narendra Modi, on Wednesday approved a Rs 10,000-crore
Container Manufacturing Promotion Scheme to boost domestic production, reduce
import dependence and position India as a global hub for container
manufacturing.
Announced in the
Union Budget 2026-27, the scheme will be implemented from the financial year
2027-28 to 2039-40, with three years earmarked for setting up manufacturing
facilities and the subsequent 10 years for production support.
The programme aims to
increase India's annual container manufacturing capacity nearly ten-fold to 7.5
lakh twenty-foot equivalent units (TEUs), from the current level of around
70,000 TEUs, while supporting both new manufacturing plants and the expansion
of existing facilities.
Union Minister for
Ports, Shipping and Waterways Sarbananda Sonowal welcomed the Cabinet decision,
crediting Modi's leadership and the Make in India initiative for strengthening
the domestic manufacturing ecosystem.
"I express my
heartfelt gratitude to Prime Minister Narendra Modi for his visionary
leadership. His Make in India push is giving our container manufacturers the
confidence to build at scale, and this scheme is a strong step to reduce import
dependence," Sonowal said.
Despite the country's
growing trade volumes, India remains heavily dependent on foreign-made
containers. Container traffic in the country is projected to rise from around
24 million TEUs in 2024 to 175 million TEUs by 2047, in line with the Maritime
Amrit Kaal Vision 2047, underscoring the need to develop indigenous
manufacturing capacity.
Of the total scheme
outlay, Rs 8,891 crore has been earmarked for operational expenditure
assistance to eligible manufacturers for every container produced to global
shipping standards and sold in the market. The support is intended to bridge
the cost gap between domestically manufactured containers and imports.
Another Rs 859 crore
will be provided as interest subvention at 3 per cent annually on eligible term
loans for greenfield plants with a minimum annual capacity of 1 lakh TEUs and
brownfield expansions of at least 25,000 TEUs.
The scheme also
provides Rs 150 crore for testing and certification infrastructure, including
common facilities for dynamic longitudinal impact testing, to reduce reliance
on overseas testing facilities. A further Rs 100 crore has been allocated for
scheme administration, monitoring and capacity building.
To facilitate
investment, eligible manufacturers will also receive support for leasing land
at major ports at 25 per cent of the notified rate.
The scheme seeks to
progressively increase domestic content in container manufacturing from 70 per
cent to 90 per cent, strengthening local supply chains and encouraging the
development of ancillary industries producing specialised steel, corner
castings, wooden frames, paints and other components.
An Inter-Ministerial
Steering Committee, chaired by the Secretary of the Ministry of Ports, Shipping
and Waterways, will approve the scheme guidelines and sanction assistance.
The government
expects the programme to generate around 3,000 direct jobs and more than 50,000
indirect employment opportunities across manufacturing, steel, logistics and
related sectors. It is also projected to generate economic output of around Rs
75,000 crore by FY 2039-40, more than seven times the government support
envisaged under the scheme.
Demand for domestically manufactured containers is expected to be driven by the replacement of the global container fleet, the proposed Bharat Container Shipping Line and the development of major port projects, including Vadhavan and Galathea Bay.
"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, and we take another step towards a self-reliant India and the goals of Maritime Amrit Kaal Vision 2047," Sonowal added.
