Cabinet likely to take up Rs 10,000 crore container manufacturing scheme

The Union Cabinet is likely to take up the approval for Rs 10,000 crore Container Manufacturing Assistance Scheme (CMAS), which is aimed at building a domestic shipping container manufacturing ecosystem and reducing India's dependence on imports, sources told ET Bureau.

The scheme was announced in the Union Budget 2026-27, and it has an outlay of Rs 10,000 crore over five years. The scheme seeks to promote domestic manufacturing by supporting the establishment of new facilities, expansion of existing units and development of testing infrastructure, skills and capacity across the container manufacturing value chain.

In order to meet the domestic demand, India imports nearly 2 million empty containers annually. This exposes container availability to global market fluctuations, freight volatility and supply-chain disruptions.

China dominates global container production; Indian units face cost disadvantage

China accounts for an estimated 90-97% of global shipping container manufacturing capacity, depending on the segment and year. Disruptions during the Covid pandemic, which led to container shortages and freight-rate volatility, further exposed the risks of relying heavily on imports for a critical component of international trade.

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Indian-made containers are estimated to cost 30-40% more than those manufactured in China, posing a challenge for domestic producers seeking to compete with established Chinese manufacturers that benefit from large-scale production and mature supply chains.

The scheme aims to expand domestic manufacturing capacity to around 7.5 lakh twenty-foot equivalent units (TEUs) annually, while improving the competitiveness of Indian manufacturers.

The government is planning to develop a globally competitive industry which is capable of meeting the country's growing demand for shipping containers.

The proposed scheme provides for capital assistance to greenfield manufacturing facilities, support for expanding existing brownfield units and operational assistance to improve industry competitiveness. It is also expected to encourage investment in ancillary industries supplying components and materials for container production.

Scheme may create over 50,000 indirect jobs

Around 3,000 direct jobs and more than 50,000 indirect jobs are expected to be generated across container manufacturing and allied industries, according to the government.

The push comes as India seeks to strengthen its position in global trade and reduce vulnerabilities in its logistics supply chain.

According to the United Nations Conference on Trade and Development (UNCTAD), around 80% of global merchandise trade by volume is transported by sea.

Bharat Container Shipping Line to boost manufacturing

The scheme comes as the government looks to build a stronger domestic maritime ecosystem. In February 2026, the Ministry of Ports, Shipping and Waterways signed an MoU to set up the Bharat Container Shipping Line, bringing together the Shipping Corporation of India, Container Corporation of India, port authorities and other stakeholders. The plan involves an estimated investment of Rs 99,149 crore to develop a fleet of 51 container vessels of different sizes and procure containers domestically.

Maersk orders 1,000 additional Made-in-India containers

Efforts to manufacture shipping containers in India have also begun to gather pace. In July 2026, the country rolled out its first domestically manufactured export-import shipping container for global shipping major A.P. Moller–Maersk. The company subsequently placed an order for another 1,000 Made-in-India containers with the DCM Shriram Group.

The proposed scheme is expected to build on these developments, alongside existing government programmes such as PM Gati Shakti, the National Logistics Policy and Sagarmala, which aim to improve port infrastructure, shipping connectivity and the movement of goods across the country.