India Approves $1.05B Plan to Boost Shipping Container Production

India has approved a $1.05 billion (100 billion rupee) scheme aimed at increasing domestic shipping container manufacturing capacity around tenfold to 750,000 TEUs annually, as the country seeks to reduce import dependence and strengthen its maritime supply chains.

The Container Manufacturing Promotion Scheme (CMPS), approved by the Union Cabinet chaired by Prime Minister Narendra Modi on October 28, will support the establishment of new manufacturing facilities and expansion of existing production units.

The initiative, first announced in the 2026–27 Union Budget, is intended to establish an internationally competitive container manufacturing industry and position India as a potential global export hub.

The largest component of the scheme provides approximately $935 million (88.91 billion rupees) in operational expenditure assistance for containers manufactured to global shipping standards and sold by eligible manufacturers.

Approximately $90 million (8.59 billion rupees) of additional funding is earmarked for interest subvention assistance, providing a 3% annual interest subsidy on eligible term loans for new manufacturing facilities and expansion of existing capacity.

The scheme also allocates approximately $16 million (1.5 billion rupees) to support shared testing and certification facilities, including dynamic longitudinal impact testing.

The government estimates that the program could generate 3,000 direct jobs and more than 50,000 indirect jobs, while supporting related industries such as specialized steel, corner castings, wooden frames and paints.