Centre Approves INR 10,000 Crore Scheme to Strengthen India’s Container Manufacturing Industry

On October 28th, the Container Manufacturing Promotion Scheme (CMPS) was approved by the Union Cabinet, which is chaired by Prime Minister Narendra Modi. Up to FY 2039–40, the plan will use a budget of INR 10,000 crore. Approximately 3,000 direct jobs and more than 50,000 indirect jobs are projected to be created by the initiative.

Additionally, it will bolster related sectors, including paints, wooden frames, specialist steel, and corner castings. The goal of the scheme is to make India a hub for container manufacturing that can compete on a global scale. Consequently, bolstering supply chain resiliency and decreasing reliance on imports. The scheme's stated goal is to facilitate the construction of both new and expanded container manufacturing facilities.

Major Components of the Scheme

One important part is the Interest Subvention Assistance (ISA), which will subsidise the interest of qualified term loans (capital loans) by 3% per year with a budget of INR 859 crore. Manufacturers of shipping containers will use these loans to either build brand-new factories from the ground up (greenfield) or to expand their current factories (brownfield).

Additionally, there is operational expenditure assistance (OEA) with a budget of INR 8,891 crore. This is meant to help cover the costs of containers that are made according to global shipping standards and supplied by manufacturers that qualify. An official statement said that this will make domestically produced containers more competitive by closing the price gap. In the Union Budget 2026-27, the Scheme for Container Manufacturing was launched.

Scheme Augments Indigenous Container Manufacturing

Domestic container manufacturing capacity will expand to 7.5 lakh TEUs per year, a tenfold increase. In addition, the scheme will establish a manufacturing base that can compete on an international scale, which might help India become a leading exporter of high-quality shipping containers. The Cabinet also claims that this will make India's logistical and maritime supply chains more resilient. Funding of INR 150 crore will also go toward testing and certification assistance, which will help set up shared facilities for things like Dynamic longitudinal impact testing, among other things. By mandating the use of domestic suppliers, the scheme hopes to strengthen the domestic supply chain.

As part of its efforts to fortify its position in international trade and shore up its logistical supply chain, India is making this push. The majority of the world's merchandise trade, over 80% by volume, is carried out by sea, according to the United Nations Conference on Trade and Development (UNCTAD). The country's first export-import shipping container was delivered to A.P. Moller-Maersk, a world-renowned shipping company, in July 2026.

Following this, the business went ahead and ordered 1,000 more containers from the DCM Shriram Group that were made in India. The scheme is anticipated to expand upon these advancements and complement current government initiatives like Sagarmala, the National Logistics Policy, and PM Gati Shakti, all of which seek to enhance the nation's port infrastructure, maritime connectivity, and the transportation of products.