India approves ₹10,000 crore scheme to boost container manufacturing

The Indian Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of ₹10,000 crore. Running through FY 2039-40, the initiative aims to increase India’s annual container manufacturing capacity tenfold, from approximately 70,000 TEUs to 7.5 lakh TEUs.

The scheme is designed to reduce import dependence and challenge the current global market concentration, where 95% of production is centered in a single country. It features three primary financial pillars:

• Interest Subvention Assistance (₹859 crore): Providing a 3% annual interest discount on term loans for greenfield facilities and brownfield expansions. • Operational Expenditure Assistance (₹8,891 crore): Bridging the cost gap for containers manufactured to global shipping standards. • Testing and Certification Assistance (₹150 crore): Supporting common facilities for quality compliance, such as dynamic longitudinal impact testing.

The program is expected to create roughly 3,000 direct jobs and over 50,000 indirect jobs while strengthening domestic supply-chain resilience and the maritime logistics sector.