India Approves Rs 10,000 Crore Container Manufacturing Scheme

The Union Cabinet of India, chaired by Prime Minister Narendra Modi, approved the Container Manufacturing Promotion Scheme (CMPS) on October 28, 2026. The initiative allocates Rs 10,000 crore (approximately $1.05 billion) through fiscal year 2039-40 to increase India's annual container manufacturing capacity ten-fold to 7.5 lakh twenty-foot equivalent units (TEUs).

Funding is distributed across three primary channels: Rs 8,891 crore for operational expenditure assistance to bridge production cost gaps, Rs 859 crore for interest subvention on term loans for greenfield and brownfield facilities, and Rs 150 crore for shared testing and certification. To qualify, new facilities must maintain an annual capacity of at least 120,000 TEUs, while expanding facilities must add at least 25,000 TEUs.

The government intends to challenge the current global market structure, where 95% of production is concentrated in a single country, by targeting a 15% global market share. This expansion is designed to meet a projected traffic growth of 175 million TEUs by 2047. Officials expect the program to create 3,000 direct and over 50,000 indirect jobs, benefiting supporting industries such as specialized steel and wooden frames.

Shipping Minister Sarbananda Sonowal described the move as a step toward a self-reliant manufacturing ecosystem, while Minister Ashwini Vaishnaw noted that shipping companies have requested the emergence of new manufacturing destinations to diversify the global supply chain.