The Union Cabinet approved the Container Manufacturing Promotion Scheme on October 28, 2026, marking one of the most significant policy interventions in India's maritime logistics supply chain in recent years. The scheme, announced in the Union Budget 2026-27, carries a total budgetary outlay of ₹10,000 crore and will operate from FY2027-28 through FY2039-40, with three years allocated for setting up facilities and ten years of production support . The approval was announced by the Ministry of Ports, Shipping and Waterways, with Union Minister Sarbananda Sonowal thanking the Prime Minister for the "Make in India push" in container manufacturing .
The scale of the ambition is considerable. India currently has an annual container manufacturing capacity of approximately 70,000 TEUs, almost all of which is insufficient to meet domestic demand, forcing the country to import the vast majority of containers used in its EXIM trade. The scheme targets a ten-fold increase to 7.5 lakh TEUs annually, a capacity level that would not only serve domestic requirements but potentially position India as a global export hub for shipping containers . India's container traffic is projected to grow from about 24 million TEUs in 2024 to 175 million TEUs by 2047 under the Maritime Amrit Kaal Vision, making domestic manufacturing capacity a strategic necessity.
The scheme's financial architecture is structured across four components. The largest allocation is Operational Expenditure Assistance at ₹8,891 crore, which provides financial support for every container manufactured to global shipping standards and sold by an eligible manufacturer, bridging the cost gap with imports and improving the competitiveness of domestically produced containers . Interest Subvention Assistance of ₹859 crore provides a 3 percent per annum interest subsidy on eligible term loans for greenfield facilities with capacity of at least 1,00,000 TEUs per year and brownfield expansions of at least 25,000 TEUs per year . Testing and certification assistance of ₹150 crore supports common facilities such as dynamic longitudinal impact testing, reducing dependence on overseas testing infrastructure .
A critical condition embedded in the scheme is the domestic content requirement, which mandates that the proportion of Indian-made components in containers rise from 70 percent to 90 percent over the scheme's duration . This provision is designed to ensure that the scheme does not merely assemble imported components but genuinely builds domestic manufacturing depth across the supply chain. The scheme is expected to generate approximately 3,000 direct jobs and over 50,000 indirect jobs, while supporting ancillary industries including corner castings, specialised steel, wooden frames, and paints.
Land leasing support at major ports represents another operational dimension of the scheme. Container manufacturers will be able to lease land at 25 percent of the notified rate, reducing the upfront capital burden of establishing facilities . This provision links container manufacturing directly to port infrastructure, enabling production facilities to be located in proximity to the ports where containers are most needed—a logistical advantage that reduces empty container repositioning costs and improves supply chain efficiency for exporters and importers.
The scheme is expected to generate approximately ₹75,000 crore of economic output by FY2039-40, more than seven times the support provided . Demand for domestically manufactured containers is anticipated from multiple sources: replacement of the global container fleet, the planned Bharat Container Shipping Line, and new mega ports including Vadhavan and Galathea Bay. An Inter-Ministerial Steering Committee chaired by the Secretary of the Ministry of Ports, Shipping and Waterways will approve guidelines and sanction assistance, providing governance oversight for the scheme's implementation.
From a logistics and trade perspective, the scheme addresses a structural vulnerability that has become increasingly apparent. During periods of global container shortages or disruptions to shipping networks, India's dependence on imported containers exposes its exporters to supply chain risks beyond their control. Domestic manufacturing capacity provides a buffer against such disruptions and reduces the foreign exchange outflow associated with container imports. The scheme also supports the broader objectives of the Maritime Amrit Kaal Vision 2047, which envisions India as a leading maritime nation with self-reliant logistics infrastructure and globally competitive port and shipping capabilities .