India has launched an ambitious push to develop domestic manufacturing of shipping containers, seeking to reduce its near-total dependence on China for a critical pillar of global trade logistics.
Shipping containers carry around 90% of world trade, yet China controls about 96% of global production capacity. Three Chinese giants—CIMC, Dong Fang International Containers and CXIC Group—dominate the market, a concentration that came sharply into focus during the Covid-19 pandemic, when container shortages sent freight rates soaring and disrupted exports worldwide, including from India.
Nearly 99% of containers used in India are Chinese-made, with public-sector operator CONCOR importing its entire fleet from China. Following the 2020 Ladakh border tensions and pandemic-era disruptions, container dependence has increasingly been viewed by policymakers as a strategic vulnerability.
Under the Atmanirbhar Bharat initiative, the government is now encouraging domestic container manufacturing through proposed production-linked incentives and public procurement support. Braithwaite & Company, a Railways ministry PSU, has begun investments at its Kolkata facility, while CONCOR has placed initial orders with Indian manufacturers. Gujarat’s Bhavnagar is being developed as a potential manufacturing hub.
India’s push mirrors a broader global diversification trend. Vietnam has emerged as an alternative manufacturing base, while the US and other Western nations have stepped up scrutiny of Chinese-made maritime infrastructure amid security concerns.
Challenges remain steep. Containers cost 30–35% more to produce in India than in China, largely due to scale disadvantages, certification costs, and limited domestic availability of Corten steel, a key input. Indian manufacturers are also newcomers, lacking the extensive product range and long-standing relationships Chinese firms enjoy with global shipping lines.
For now, the domestic market offers the clearest opportunity. CONCOR alone expects demand for around 50,000 containers in the coming years, which could help Indian producers achieve scale and reduce costs. Some overseas buyers, seeking to diversify away from China, have also shown interest despite higher prices.
The container initiative fits into a wider logistics strategy that includes port modernisation under Sagarmala, dedicated freight corridors, and expanded inland waterways. Together, these efforts aim to position India not just as a manufacturing base, but as a reliable global logistics hub.
While China’s dominance is unlikely to be challenged quickly, India’s move reflects a growing recognition that resilient supply chains begin with control over the most basic building blocks of trade—even the humble steel box.
