The government’s ambitious container manufacturing support scheme announced in the Union Budget 2026–27 is expected to attract more than ₹1 trillion in investments, significantly boost domestic production, and strengthen India’s position in global supply chains, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said in an interview.
Unveiled by Finance Minister Nirmala Sitharaman, the ₹10,000 crore container manufacturing assistance programme aims to build a robust domestic container production ecosystem, substantially reducing reliance on imports and conserving foreign exchange.
“It is designed to create a domestic manufacturing capacity of around 750,000 twenty-foot equivalent units (TEUs) annually — roughly 10 per cent of global demand — over the coming years,” Sonowal said. The initiative is also expected to generate employment with an estimated 3,000 direct and 50,000 indirect jobs in related sectors, he added.
Strategic Boost to National Shipping Capabilities
The minister highlighted that the scheme will catalyse growth for the newly formed Bharat Container Shipping Line (BCSL), envisioned as India’s national container carrier. BCSL plans an initial fleet expansion strategy that includes procuring mid-size vessels for regional and coastal routes, gradually scaling up to larger ocean-going ships.
In addition to the container support scheme, Sonowal noted that recent tax and customs reforms announced in the Budget — such as extending tax-holiday periods for units in the International Financial Services Centre (IFSC) and revising Customs duty exemptions — are expected to further unlock investment pipelines by improving after-tax returns and boosting India’s attractiveness as a base for global ship ownership and leasing.
Broader Maritime Vision
The minister also reiterated the government’s medium- to long-term goals for strengthening India’s maritime ecosystem, including expansion of port capacity, coastal shipping reforms, and regulatory clarity under the newly enacted Coastal Shipping Act, 2025. These measures, he said, will build a more competitive and investor-friendly coastal and maritime sector while supporting logistics efficiency.
“The container scheme is not just about building boxes — it’s about building capability, jobs, and a globally competitive industry that supports India’s trade ambitions,” Sonowal said.
Outlook and Expectations
Officials expect the combined impact of the container manufacturing push, shipping reforms, and investment incentives to attract substantial capital inflows from both domestic and international players in the coming years, potentially transforming India’s role in the global maritime and logistics landscape.
