Budget 2026 unveils new container scheme and 20 new waterways

The government has allocated ₹10,000 crore over five years for a 'Scheme for Container Manufacturing.' The goal of this initiative is to establish a globally competitive domestic ecosystem for container production, thereby reversing the current dependence on imports.

The initiative has a target of achieving an annual domestic manufacturing capacity of approximately 1 million Twenty-foot Equivalent Units (TEUs) over the next decade.

As per the official statement, “This programme is projected to generate a market value of nearly ₹1.07 lakh crore, resulting in an economic multiplier effect of roughly eight times the government support.”

Furthermore, the initiative is expected to create 3,000 direct jobs and over 50,000 indirect jobs, thereby stimulating ancillary industries such as specialized steel, corner castings, and water-based paints.

"This scheme will build a strong domestic ecosystem capable of meeting the rising demand of containerised cargo... Together with the Bharat Container Shipping Line, this marks a decisive move toward maritime self-reliance and a more resilient logistics supply chain for the country," said Sarbananda Sonowal, Union Minister of Port and Shipping.

Inland waterways revolution
Building on the growth of inland water transport, which has surged by nearly 700% from 18.1 million metric tonnes in 2013–14 to 145.5 million metric tonnes in 2024–25, the Budget aims to operationalise 20 new National Waterways in the next five years.

The focused development of National Waterway–5 on the Mahanadi river system. With an estimated investment of ₹13,000 crore, this project will connect the mineral-rich belts of Talcher and Angul with industrial hubs like Kalinga Nagar and ports at Paradeep and Dhamra.

The corridor's capacity is projected to handle 10 million tonnes of cargo by 2032, with an increase expected to 20 million tonnes by 2047. This infrastructure holds immense strategic value as it will function as a critical link for transporting essential raw materials, specifically coal, coking coal, and limestone, thereby playing a key role in unlocking the economic potential of eastern India.

To promote a modal shift from land to water transport, the budget introduced the Coastal Cargo Promotion Scheme, aiming to double the share of inland waterways and coastal shipping from 6% to 12% by 2047.

Supporting this integration, the government plans to develop new Dedicated Freight Corridors (DFC) connecting Dankuni (East) to Surat (West) to improve cargo evacuation and port connectivity.

Furthermore, Indian ship ownership, the tax deduction period for units in GIFT IFSC has been extended from 10 to 20 consecutive years. Regarding customs duty, the sunset clause for duty exemption on small vessel imports has been extended to March 2028, while exemptions for large vessels have been permanently removed to encourage domestic flagging.

A relief for importers, the budget promises a seamless, interconnected digital window for cargo clearance approvals from various government agencies by the end of this financial year.

By April 2026, the new system for clearing food, drugs, plant, and animal products will be fully operational; these categories account for 70% of interdicted cargo. Furthermore, for goods that have no compliance requirements, Customs will grant instant clearance immediately upon the completion of online registration and duty payment.

To support this infrastructure growth, the government will establish Regional Centres of Excellence (RCoE) for skill development in Kolkata, Varanasi, and Dibrugarh (Assam). Additionally, a dedicated ship repair ecosystem will be set up in Varanasi and Patna to generate skilled employment and ensure operational reliability for the inland waterways network.