New Delhi/Alive News: The Union Cabinet on Wednesday approved the ₹10,000 crore Container Manufacturing Promotion Scheme (CMPS) to strengthen domestic production, reduce import dependence and develop a competitive shipping container industry. The scheme aims to increase India’s annual manufacturing capacity from around 70,000 twenty-foot equivalent units (TEUs) to 7.5 lakh TEUs.
Shipping containers are standardised steel boxes used to transport goods through ships, trains and trucks. They are essential to international trade, with maritime transport accounting for around 95 per cent of India’s merchandise trade by volume and 70 per cent by value, according to government data.
India currently depends heavily on imports, particularly from China, which dominates global container manufacturing due to its large factories, established supplier networks and lower production costs. Industry estimates suggest that manufacturing a container in China costs around $1,700 per TEU, compared with $2,200-2,400 elsewhere.
The scheme will provide ₹8,891 crore in operational assistance, ₹859 crore in interest subsidies and ₹150 crore for testing and certification facilities. Eligible manufacturers will receive production-linked assistance, while qualifying projects can access an annual interest subsidy of three per cent on term loans.
The government estimates that the initiative could generate 3,000 direct jobs and more than 50,000 indirect jobs. Manufacturers must maintain at least 70 per cent domestic content through FY32, increasing to 90 per cent from FY33.
Industry experts believe the scheme could encourage local sourcing of specialised steel, paints and container components, while helping Indian manufacturers enter global supply chains.
However, the initiative may not directly reduce freight charges. Shipping costs also depend on fuel prices, vessel capacity, port tariffs, global demand and container repositioning. Its long-term success will depend on competitive production costs, quality standards, reliable supply chains and sufficient orders from shipping companies.
