New Delhi, 28 October (H.S.): The Union Cabinet on Wednesday approved a Rs. 10,000 crore Container Manufacturing Incentive Scheme to promote domestic production and develop a world-class container manufacturing ecosystem in India. The scheme, which will remain in effect until the financial year 2039-40, aims to reduce import dependence, strengthen supply chains and establish India as a major global manufacturing hub.

The government estimates that the initiative will increase India’s domestic container manufacturing capacity nearly tenfold to 7.5 lakh twenty-foot equivalent units (TEUs) annually. It is also expected to generate more than 53,000 direct and indirect employment opportunities.

Briefing the media on the Cabinet’s decisions, Union Minister for Information and Broadcasting Ashwini Vaishnaw said containers were integral to trade in India and across the world. With the exception of bulk commodities, almost all goods transported for export and import are carried in containers.

Vaishnaw noted that global container manufacturing was highly concentrated, with approximately 95 per cent of production taking place in a single country.

“Containers are an important component of trade in India and across the world. With the exception of bulk commodities, almost all goods transported for export or import are carried in containers. Global container manufacturing is highly concentrated, with 95 per cent of production taking place in a single country. Given this heavy dependence, shipping lines and companies have long been calling for another country to emerge as a strong player in container manufacturing. The scheme approved by the Prime Minister and the Cabinet today has been designed to help India emerge as a new hub for container manufacturing in the coming years,” he said.

The minister said the scheme had a total outlay of Rs. 10,000 crore and comprised four components. These include interest subvention on eligible capital investment loans, operational expenditure support, assistance for testing and certification, and the development of shared testing and certification facilities.

Vaishnaw explained that the scheme would provide a three per cent interest subsidy on eligible loans taken for capital investment. He also highlighted the importance of testing and certification, noting that containers used by shipping companies worldwide must undergo prescribed testing, comply with international standards and receive certification in accordance with established international procedures.

He said the certification process involved substantial expenditure and that the scheme would provide dedicated financial assistance to cover these costs.

Four Components to Support Manufacturing and Certification

Under the scheme, Rs. 859 crore has been earmarked for interest subvention to support the establishment of new manufacturing facilities and the expansion of existing units. Eligible manufacturers will receive an annual interest subsidy of three per cent on qualifying term loans taken for capital investment in new facilities or capacity expansion.

A substantial allocation of Rs. 8,891 crore has been set aside for operational expenditure support. Under this component, eligible manufacturers will receive financial assistance for containers manufactured and sold in accordance with global maritime transportation standards. The measure is intended to address cost-related challenges faced by domestic manufacturers and make Indian-made containers more competitive in international markets.

In addition, Rs. 150 crore has been allocated for developing testing and certification facilities. These shared facilities will support assessments of container strength, impact resistance and other essential performance parameters to ensure compliance with international requirements.

Domestic Production Capacity Expected to Rise Tenfold

The government expects the scheme to increase India’s annual container manufacturing capacity nearly tenfold to 7.5 lakh TEUs. A TEU, or twenty-foot equivalent unit, is the standard measurement used in container transportation and corresponds to the capacity of a standard 20-foot container.

The expansion is expected to strengthen India’s prospects of emerging as a global export hub for high-quality shipping containers while reducing reliance on imported containers.

Over 53,000 Jobs Expected

The scheme is projected to generate approximately 3,000 direct jobs and more than 50,000 indirect employment opportunities. It is also expected to stimulate ancillary industries involved in the production of specialised steel, corner castings, wooden flooring and paint, among other components used in container manufacturing.

The Container Manufacturing Incentive Scheme was announced in the Union Budget for 2026-27. The government expects the initiative to strengthen supply chains across the maritime transport and logistics sectors, expand domestic manufacturing capabilities and reduce India’s dependence on imported shipping containers.

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Hindusthan Samachar / Jun Sarkar