Union Cabinet approves ₹10,000 crore Container Manufacturing Scheme to boost India's production

The Union Cabinet in New Delhi recently endorsed a ₹10,000 crore Container Manufacturing Promotion Scheme with the objective of establishing a globally competitive container manufacturing ecosystem within India. The scheme, which will span 13 years, aims to increase India's annual domestic manufacturing capacity of twenty-foot equivalent units (TEUs) tenfold by 2040, from around 24 million TEUs in 2024 to 750,000 TEUs by 2040.

This ambitious initiative was unveiled in the 2026-27 budget and is expected to significantly reduce India's dependence on imports for container manufacturing. Railway Minister Ashwini Vaishnaw highlighted that the scheme will aid in the setting up of new manufacturing facilities as well as the expansion of existing ones. The government's port, shipping, and waterways minister, Sarbananda Sonowal, echoed similar sentiments, emphasizing the scheme's potential to bolster India's maritime trade.

The scheme has been allocated an operational expenditure assistance of ₹8,891 crore. This financial aid will be granted to eligible manufacturers for producing containers that adhere to global shipping standards and are sold domestically. The scheme will also help bridge the cost gap and enhance the competitiveness of locally manufactured containers.

An additional perk of the scheme includes an interest subvention of 3% per annum on term loans taken by container manufacturers to establish new facilities or expand existing manufacturing capabilities. A portion of ₹859 crore has been designated for this specific component. The Cabinet's decision also includes the approval of the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) and the Khelo India Sports Goods Manufacturing Scheme.