# India backs expansion of domestic container manufacturing

- **Source:** https://pelavox.com/india-container-manufacturing-expansion-scheme/
- **Publisher:** pelavox. (The voice of shipping)
- **Author:** Jason Nicholson
- **Published:** 2026-10-30T04:00:00+00:00
- **Updated:** 2026-10-29T10:14:49+00:00
- **Section:** Shipping / Container
- **Type:** News
- **Topics:** Bharat Container Shipping Line, Container Manufacturing, India, Maritime Industry, Shipping Containers, Supply Chains

India’s Union Cabinet has approved a new financial support programme aimed at substantially expanding the country’s domestic shipping container manufacturing industry and reducing its reliance on imported equipment.

The Container Manufacturing Promotion Scheme (CMPS), with a total budget of Rs 10,000 crore, is designed to increase annual manufacturing capacity from approximately 70,000 TEU to 750,000 TEU. Originally announced in the Union Budget 2026–27, the programme will run from the 2027–28 financial year through 2039–40.

The initiative will provide financial assistance to companies establishing new container manufacturing facilities and to existing producers expanding their operations. It also includes measures to support production costs, improve testing infrastructure and encourage the use of domestically sourced materials.

## Financial support for manufacturers

Under the scheme, Rs 859 crore has been allocated to interest subsidies for eligible manufacturers. Companies will be able to receive annual interest support of 3% on qualifying term loans used to establish new factories or expand existing production facilities.

New manufacturing plants must have a minimum annual capacity of 100,000 TEU to qualify, while expansion projects must add at least 25,000 TEU of annual production capacity.

The largest component of the programme, amounting to Rs 8,891 crore, will provide operational expenditure assistance for eligible containers manufactured to international shipping standards and sold by approved producers. The government intends to use this support to narrow the production cost difference between domestically manufactured and imported containers.

Manufacturers will initially be required to meet a minimum domestic content threshold of 70%, which will increase to 90% from the 2032–33 financial year.

A further Rs 150 crore has been allocated to testing and certification facilities, including shared infrastructure for dynamic longitudinal impact testing. The scheme also provides for eligible manufacturers to lease land at major ports at 25% of the notified rate.

## Supporting future container demand

The government’s decision comes as India prepares for a substantial increase in containerised trade. The country handled approximately 24 million TEU in 2024, while its Maritime Amrit Kaal Vision projects container traffic could reach 175 million TEU by 2047.

Authorities expect future demand for domestically manufactured containers to be supported by equipment replacement requirements, the proposed Bharat Container Shipping Line and major port developments, including Vadhavan and Galathea Bay.

The programme is also intended to support industries supplying materials and components for container production, including specialised steel, corner castings, wooden flooring and protective coatings.

According to government estimates, the scheme could generate approximately Rs 75,000 crore in economic output by the 2039–40 financial year, alongside around 3,000 direct jobs and more than 50,000 indirect employment opportunities.

Implementation will be overseen by an inter-ministerial steering committee chaired by the Secretary of the Ministry of Ports, Shipping and Waterways. The committee will be responsible for approving programme guidelines and authorising financial assistance.

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Cite as: "India backs expansion of domestic container manufacturing", pelavox., 30 October 2026, https://pelavox.com/india-container-manufacturing-expansion-scheme/