The Union government is set to announce a ₹10,000 crore Container Manufacturing Promotion Scheme aimed at creating large-scale container manufacturing capacity in India and reducing dependence on imports, particularly from China.
Under the proposed scheme, eligible greenfield facilities and brownfield expansions will receive capital expenditure assistance of 25% of the approved project cost, along with operating expenditure support of at least $550 (around ₹49,500) per container.
The scheme will run for 13 years from FY2026-27 to FY2038-39 and will require eligible manufacturers to have a minimum group capacity of 1 lakh TEUs per annum.
The operating expenditure support will be linked to containers manufactured and sold in India. The government will use $550 as the base operating cost reference value for a 20-foot dry van or high-cube ISO container while determining the per-container grant.
The scheme is aimed at addressing India’s structural cost disadvantage in container manufacturing, promoting automation and quality, generating employment and strengthening the country’s export-import and multimodal logistics supply chains.
Container manufacturing has been identified as one of the seven strategic and frontier sectors for scaling up domestic manufacturing. India currently remains heavily dependent on overseas suppliers, with China accounting for an estimated up to 97% of global container manufacturing.
Industry estimates suggest containers manufactured in India are 30–40% more expensive than those produced in China, mainly due to higher material costs, lower production volumes and limited manufacturing capacity. A container manufactured in China is estimated to cost less than $2,000.
Major business groups, including Adani Ports and Special Economic Zone, J M Baxi and Mediterranean Shipping Company, are reportedly exploring opportunities to enter container manufacturing in India.
The government expects the combination of capital assistance and output-linked operating support to encourage investments at scale and help Indian manufacturers become globally competitive, while reducing import dependence and strengthening the resilience of India’s maritime and logistics supply chains.