Indian Economy News

Cabinet approves Container Manufacturing Promotion Scheme

The Union Cabinet, chaired by Prime Minister Mr. Narendra Modi, has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of Rs. 10,000 crore (US$ 1.05 billion) until FY40. Announced in the Union Budget 2026-27, the scheme aims to establish a globally competitive container manufacturing ecosystem in India, reduce import dependence and strengthen supply-chain resilience. It will support the establishment of new manufacturing facilities and the expansion of existing container manufacturing units. The scheme is expected to increase India’s annual domestic container manufacturing capacity by around ten-fold to 7.5 lakh twenty-foot equivalent units (TEUs), creating a stronger manufacturing base for the country’s maritime and logistics sectors.

The scheme has three major components: Interest Subvention Assistance (ISA), with an outlay of Rs. 859 crore (US$ 90.37 million), providing 3% annual interest subvention on eligible term loans for greenfield facilities and brownfield expansions; Operational Expenditure Assistance (OEA), with an allocation of Rs. 8,891 crore (US$ 935.40 million), aiding for eligible containers manufactured to global shipping standards and sold by approved manufacturers; and testing and certification assistance, with an outlay of Rs. 150 crore (US$ 15.78 million), to support common facilities such as dynamic longitudinal impact testing. The scheme is expected to position India as a potential global export hub for quality shipping containers, strengthen maritime and logistics supply chains, generate an estimated 3,000 direct jobs and over 50,000 indirect jobs, and support ancillary industries, including specialized steel, corner castings, wooden frames and paints.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.