The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of Rs 10,000 crore until FY 2039-40. The scheme aims to establish a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply chain resilience.

Announced in the Union Budget 2026-27, the scheme will support the establishment of new container manufacturing facilities as well as the expansion of existing production units.

The scheme comprises three major components:

Interest Subvention Assistance (ISA): With a financial allocation of Rs 859 crore, the component will provide interest subvention of 3% per annum on eligible term loans availed by manufacturers for setting up greenfield facilities and expanding existing brownfield manufacturing capacities.

Operational Expenditure Assistance (OEA): Allocated Rs 8,891 crore, this component will provide financial assistance for containers manufactured according to global shipping standards and sold by eligible domestic manufacturers. The support aims to bridge the cost gap and improve the competitiveness of Indian-made containers.

Testing and Certification Assistance: With an allocation of Rs 150 crore, this component will support the establishment of common testing facilities, including infrastructure for dynamic longitudinal impact testing and other relevant certification requirements.

Expected impact of the scheme

The initiative aims to increase India's annual domestic container manufacturing capacity nearly tenfold to approximately 7.5 lakh twenty-foot equivalent units (TEUs). It is also expected to establish an internationally competitive manufacturing base and position India as a potential global export hub for quality shipping containers.

The scheme is intended to strengthen the resilience of India's maritime and logistics supply chains by improving domestic availability and reducing reliance on imported containers.

Additionally, the initiative is projected to generate around 3,000 direct jobs and more than 50,000 indirect employment opportunities. It is also expected to support ancillary industries, including manufacturers of corner castings, specialised steel, wooden frames and paints.

Through financial assistance, operational support and improved testing infrastructure, the scheme seeks to accelerate domestic manufacturing capacity, enhance cost competitiveness and strengthen India's position in the global shipping container industry.