Government Plans Support for 'Make in India' Container Production

The Indian government is considering financial support for local manufacturing of shipping containers due to a growing shortage and rising costs post-COVID-19. A viability gap funding (VGF) scheme is under discussion as part of a mission-mode implementation plan, according to sources familiar with the matter. "Direct subsidy and support via VGF are under examination," said a government official, adding that inter-ministerial consultations are ongoing. A container manufacturing mission is being considered to expedite local production.

This initiative aims to protect exporters and importers from sudden container shortages and premium spikes. The issue of container availability became critical post-COVID when China began importing empty containers by offering premiums.

"Chinese container owners often dominate the market during global disturbances, leading to shortages. India aims to break free from this situation," the official told ET. These suggestions were initially proposed by an inter-ministerial group in 2022 but have gained momentum due to recent container shortages and premium spikes caused by geopolitical conflicts.

"The goal is to create an ecosystem for container production under the 'Make in India' program," the official added. With government support, locally manufactured containers can be priced more competitively than foreign-owned ones. Incentives are expected to be announced in the current financial year.

It is estimated that the Container Corporation of India (Concor) alone has a near-term demand for approximately 50,000 containers. "Routing the funds needs to be finalized, and Concor may also receive a subsidy to purchase Indian containers," the official added.