Cabinet Approves ₹10,000-Crore Container Manufacturing Scheme to Boost Domestic Production

The Union Cabinet on Wednesday approved a ₹10,000-crore Container Manufacturing Promotion Scheme, with financial support extending up to the financial year 2039–40. The initiative aims to increase India's domestic container production capacity nearly tenfold to 0.75 million twenty-foot equivalent units (TEUs) annually and reduce the country's dependence on imported shipping containers.

Announced in the Union Budget for 2026–27, the scheme will provide support for setting up new greenfield manufacturing facilities as well as expanding existing production units. Of the total allocation, ₹8,891 crore has been set aside for operational expenditure assistance, ₹859 crore for interest subvention and ₹150 crore for testing and certification infrastructure, Information and Broadcasting Minister Ashwini Vaishnaw said after the Cabinet meeting.

The operational expenditure support will cover containers manufactured by eligible domestic companies in accordance with international shipping standards and sold in the market. The assistance is intended to narrow the cost difference between locally manufactured containers and imported alternatives. Under the interest subvention component, manufacturers will receive support of 3% per annum on eligible term loans taken to establish new facilities or increase existing production capacity. The testing and certification allocation will help develop common facilities, including infrastructure for dynamic longitudinal impact testing.

The scheme was first announced in the Union Budget 2026–27 to address the shortage of shipping containers frequently faced by Indian exporters. Such shortages become more challenging during disruptions in global shipping, including geopolitical tensions, vessel rerouting, port congestion and sudden shifts in international trade flows.

Vaishnaw said the government's target is to have 15–20% of container manufacturing undertaken in India. The country's annual container imports are estimated at nearly 2 million units, while domestic manufacturing capacity remains relatively limited.

Expanding production will also require a reliable domestic supply of specialised steel, particularly Corten steel, which is widely used in shipping containers. Unlike conventional carbon steel, Corten steel develops a dense protective layer of iron oxide, known as patina, when exposed to moisture and oxygen. This property makes it suitable for marine applications. Indian steelmakers, including JSW, Tata Steel and SAIL, along with smaller manufacturers, have the capability to produce this specialised material.

Other essential components include corner castings, flooring, protective coatings, locking systems and related hardware, many of which are currently imported. Hardwood flooring veneers and bamboo plywood are sourced from countries such as Malaysia, Indonesia, Vietnam, Myanmar and China. High-precision locking systems and corner castings are also frequently procured from China, supported by competitive pricing and large-scale availability.

At present, China accounts for around 95% of global shipping container manufacturing.

The government expects the scheme to create an internationally competitive domestic manufacturing ecosystem and potentially position India as an export hub for shipping containers. It is projected to generate around 3,000 direct jobs and more than 50,000 indirect employment opportunities. The programme is also expected to create demand for supporting industries supplying specialised steel, corner castings, wooden frames, paints and other container components.

DCM Containers, part of DCM Shriram International, is among the early companies entering India's domestic container manufacturing market. Global shipping major Maersk placed an order for an additional 1,000 containers with the company in July 2026, following its earlier procurement of domestically manufactured containers.

Other companies participating in the emerging domestic manufacturing ecosystem include Jupiter Wagons, APPL Container, Kalyani Cast Tech and SYMCON Industries.