Chaired by Prime Minister Narendra Modi, the Union Cabinet approved a Rs 10,000-crore scheme to boost container manufacturing in the country, according to DD India, establishing a comprehensive financial program spanning 13 years up to fiscal year 2039-40. Originally introduced during the Union Budget 2026-27 presentation, the program aims to scale national production capacity to 7.5 lakh twenty-foot equivalent units annually, counteracting reliance on China, which controls an estimated 90% to 97% of international container production capacity.
Domestic shipping operations currently import approximately 2 million empty containers each year, exposing container availability to global supply-chain shocks. According to data from the United Nations Conference on Trade and Development, approximately 80% of global merchandise trade by volume is transported across international maritime sea routes. Because containers manufactured in India currently face an estimated 30% to 40% cost disadvantage relative to Chinese producers, the federal program deploys four targeted financial pillars to establish industrial competitiveness and create around 3,000 direct jobs alongside more than 50,000 indirect employment opportunities.
Earlier in 2026, French shipping line CMA CGM placed its first container order on an Indian manufacturer, DCM Containers and Engineering, according to Business Standard.
The government targets 15 to 20 per cent of global container manufacturing to be done in India, according to Business Standard.
The largest financial allocation directs Rs 8,891 crore toward Operational Expenditure Assistance to offset production cost differentials during initial operating years. Under this mechanism, manufacturers will receive direct fiscal incentives of Rs 49,500 per standard 20-foot container and Rs 86,625 per 40-foot unit, contingent on satisfying minimum local content requirements of 70% until FY 2031-32, rising to 90% from FY 2032-33. For specialised 20-foot units, operational assistance ranges from Rs 37,125 to Rs 74,250 per container.
New container manufacturing units and existing units expanding capacity must be commissioned within three years of in-principle approval, according to Business Standard.
To lower capital financing costs, the scheme earmarks Rs 859 crore for Interest Subvention Assistance, providing an annual interest discount of 3% on commercial term loans up to Rs 150 crore for qualifying facilities. Qualifying greenfield manufacturing plants must deliver an annual production capacity of at least 100,000 TEUs, while brownfield expansions must add a minimum of 25,000 TEUs. A dedicated allocation of Rs 150 crore, representing around 1.5% of total scheme resources, will support laboratory testing and global quality certification. Complementing fiscal aid, Land Leasing Support enables Major Port Authorities to offer industrial parcels at concessional lease rates of 25%.
The maritime logistics initiative operates alongside parallel infrastructure modernizations under PM Gati Shakti, the National Logistics Policy and Sagarmala. In concurrent decisions, the Union Cabinet sanctioned a separate industrial promotion scheme with an outlay of Rs 1,856 crore for sports goods manufacturing, alongside an expansive road infrastructure plan encompassing 51 highway projects representing an estimated public capital investment of Rs 99,149 crore across multiple economic corridors.
