The new scheme to spur domestic container manufacturing may include a subsidy of about $800 per container to support the production of nearly 1.5 million twenty-foot equivalent units (TEUs) over the next five years.
Currently, manufacturing containers in India remains commercially unviable due to a significant cost disadvantage compared to China. Industry estimates suggest that producing a container domestically costs around $2,500, while the same unit can be bought from China for roughly $1,700. The gap is largely driven by input costs and the limited availability of specialised container-grade steel in India, which domestic steelmakers have not scaled up due to relatively low demand.
Bridging the $800 Cost
The objective of the Container Manufacturing Assistance Scheme (CMAS) is to reduce India’s heavy reliance on imported containers and strengthen supply chain resilience. Import substitution could also save around $255 million in foreign exchange reserves. Sources said the scheme will likely be rolled out as soon as possible in the next financial year.
To address these challenges, the Union Budget has proposed CMAS with a total outlay of ₹10,000 crore over five years. The scheme aims to create a globally competitive manufacturing base aligned with the rapid expansion of containerised cargo, which accounts for nearly two-thirds of global trade by value.
Rs 1 Lakh Crore Market Opportunity
The programme is expected to generate a market opportunity of over Rs 1 lakh crore, reflecting a strong multiplier effect on government investment. It is also projected to create around 3,000 direct jobs and more than 50,000 indirect employment opportunities, while stimulating ancillary industries such as specialised steel, corner castings, wooden flooring, and eco-friendly coatings.
Besides steel firms, the scheme may encourage participation from shipping lines and leasing firms.
The initiative will significantly reduce India’s dependence on imported empty containers, which currently stands at nearly two million units, and strengthen national supply-chain resilience.
This marks a decisive move toward maritime self-reliance and a more resilient logistics supply chain for the country.