India has approved a Rs 10,000 crore plan to manufacture more shipping containers at home, addressing an important need in the country’s trade network. The Union Cabinet, chaired by Prime Minister Narendra Modi, cleared the Container Manufacturing Promotion Scheme on October 28, 2026. Announced in the Union Budget 2026–27, the programme will support new factories and the expansion of existing units, helping Indian manufacturers compete with overseas suppliers.
Shipping containers carry goods between factories, ports and markets. Although India depends heavily on these large boxes for trade, almost all are manufactured abroad, according to the government. The scheme aims to reduce this dependence and make the transport network more reliable. For businesses sending products overseas, a stronger domestic container industry could provide another source of essential equipment.
The programme will run from financial year 2027–28 to 2039–40, allowing three years to establish facilities and ten years of production support. It aims to increase annual manufacturing capacity from about 70,000 twenty-foot equivalent units, or TEUs, to 7.5 lakh TEUs—roughly a tenfold expansion. TEUs measure container capacity using a standard twenty-foot container as the reference, rather than counting every container as the same size.
The largest allocation, Rs 8,891 crore, will provide financial assistance for containers manufactured to international shipping standards and sold by eligible companies. This support is intended to narrow the cost difference between Indian-made containers and imports. The focus is therefore not simply on opening factories, but on helping them produce containers that can compete in the market.
Another Rs 859 crore will fund annual interest assistance of 3 per cent on eligible loans for new plants and factory expansions. New facilities must have annual capacity of at least one lakh TEUs, while expansions must add at least 25,000 TEUs. This assistance is meant to ease borrowing costs for manufacturers investing in additional production capacity.
Testing and certification will receive Rs 150 crore to develop shared facilities that check whether containers meet shipping requirements. These include impact tests that assess container strength. A further Rs 100 crore will cover scheme management, monitoring and capacity building. Manufacturers will also receive support to lease land at major ports at 25 per cent of the notified rate.
The scheme also seeks to strengthen Indian supply networks. Eligible manufacturers must meet a minimum local-content requirement of 70 per cent through 2031–32, rising to 90 per cent from 2032–33. This means a growing share of manufacturing inputs must come from domestic sources, creating opportunities beyond container assembly.
The government expects around 3,000 direct jobs and more than 50,000 indirect jobs, with related opportunities in specialised steel, corner fittings, wooden frames, paints and logistics. It estimates economic output of about Rs 75,000 crore by 2039–40. These figures are projected benefits, not results already achieved. A committee led by the shipping ministry’s secretary will approve guidelines and financial assistance.
Ports, Shipping and Waterways Minister Sarbananda Sonowal said the programme would strengthen the logistics network serving exporters, ports and shipping companies. Its wider purpose is to ensure that India’s growing trade is supported by a stronger manufacturing base at home, rather than continued dependence on imported containers.
