Cabinet clears ₹100 bn scheme to boost container manufacturing

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of ₹100 billion up to FY 2039–40 to build a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply-chain resilience.

Announced in the Union Budget 2026–27, the scheme will support the establishment of new container manufacturing facilities as well as the expansion of existing units.

The scheme has three key components: Interest Subvention Assistance, Operational Expenditure Assistance, and testing and certification support.

Under Interest Subvention Assistance, an allocation of ₹8.59 billion will provide a 3% annual interest subsidy on eligible term loans taken by manufacturers to establish greenfield facilities or expand existing manufacturing capacity.

The largest component, Operational Expenditure Assistance, has an allocation of ₹88.91 billion. It will provide financial assistance for containers manufactured to global shipping standards and sold by eligible manufacturers, helping bridge the cost gap and improve the competitiveness of domestically produced containers.

A further ₹1.5 billion has been earmarked for testing and certification assistance, including support for common facilities for testing requirements such as dynamic longitudinal impact testing.

The government aims to increase India's annual domestic container manufacturing capacity around ten-fold to 750,000 twenty-foot equivalent units (TEUs). The scheme is also intended to create an internationally competitive manufacturing base and position India as a potential global export hub for quality shipping containers.

According to the government, the initiative is expected to generate around 3,000 direct jobs and more than 50,000 indirect jobs. It is also expected to support ancillary industries involved in producing corner castings, specialised steel, wooden frames and paints.

The scheme is expected to strengthen the resilience of India's maritime and logistics supply chains by building domestic manufacturing capacity and reducing reliance on imported shipping containers.