Mint explainer: why India wants to make its own shipping containers

India plans to scale annual container capacity more than tenfold by FY40 through a ₹10,000-crore scheme. Here's why it matters for trade, manufacturing and supply-chain resilience.

The Union Cabinet on 28 October approved a ₹10,000-crore scheme to boost domestic container manufacturing, with an aim to raise India's annual capacity from 70,000 twenty-foot equivalent units (TEUs) to 7.5 lakh TEUs by FY40. The outlay includes ₹8,891 crore for operating-cost support, ₹859 crore in interest subsidies and ₹150 crore for testing and certification.

Mint explains why India wants to build a domestic container industry and what the scheme seeks to achieve.

Why does India want to manufacture shipping containers?

Containers, the steel boxes that carry freight across the world, are among the foundations of globalization, according to economist and journalist Marc Levinson, author of The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, first published in 2006.

“What is it about the container that is so important? Surely not the thing itself. A soulless aluminum or steel box held together with welds and rivets, with a wooden floor and two enormous doors at one end: the standard container has all the romance of a tin can,” Levinson wrote in the book's opening paragraphs, before describing containers as a major advancement for the global economy. “The container made shipping cheap, and by doing so changed the shape of the world economy,” he said.

Yet manufacturing remains highly concentrated. China accounted for more than 97% of global container production in FY26, compared with India's 0.5%, according to the FY26 annual report of the National Shipping Board, the highest advisory body on maritime affairs under the Union ministry of ports, shipping and waterways.

Union minister Ashwini Vaishnaw said India aims to capture 15-20% of global container manufacturing by FY40, reducing dependence on a sector where production is concentrated in one country.

Domestic capacity could also help during supply-chain disruptions. During the West Asia war in April, for instance, Indian mango exporters faced a shortage of refrigerated containers and had to rely on more expensive alternatives, alongside higher freight rates.

Why does China dominate production?

The China Container Industry Association reported in April 2026 that China produced about 6.45 million TEUs in 2025, retaining its lead in global manufacturing. India's current capacity is around 70,000 TEUs, Vaishnaw said on Wednesday.

China's advantage rests on an established manufacturing ecosystem. Container makers operate in clusters, sourcing steel, a key raw material, from nearby plants. China is also the world's largest steel producer.

Decades-old relationships with shipping lines, logistics operators and suppliers have strengthened this ecosystem. Its position as a major exporter also supports sustained demand. China exported $3.77 trillion worth of merchandise in 2025, according to the World Trade Organization.

What does the ₹10,000-crore scheme offer?

India had been considering a ₹11,000-crore production-linked incentive scheme for container manufacturing in FY24, Mint reported in July 2024. The Cabinet has now approved a ₹10,000-crore support scheme over 13 years.

The scheme offers support across manufacturing costs, including concessional port lease rates for container makers and partial interest subsidies on capital loans. Most of the outlay, however, will cover operating expenses.

The government has earmarked ₹8,891 crore, nearly 90% of the total, for fiscal incentives linked to production. The support will amount to ₹49,500 per 20-foot container, ₹86,625 per 40-foot container and ₹37,125-74,250 per specialised 20-foot container, according to Vaishnaw's presentation during a press briefing on Wednesday.

Industry executives say the scheme could strengthen domestic supply and reduce vulnerability to shortages.

“During any supply chain disruption, a container shortage occurs. Having a domestic container making industry would certainly reduce the risk of a shortage. Moreover, some of the containers made in India can also be used for local freight transportation, something that imported containers cannot be used for,” said Shankar Shinde, managing director of Mumbai-based reefer service provider Global Express Multilogistics Pvt. Ltd. and former chairman of the Federation of Freight Forwarders' Associations in India.

Which sectors stand to benefit?

The steel industry is a direct beneficiary because containers are made of steel. Trade is another key link: higher exports require more containers. This also supports India's broader push for export-led growth, with trade agreements signed with the European Union, the UK and the European Free Trade Association (EFTA), alongside ongoing negotiations for a bilateral deal with the US.

Ports could also benefit. India has 214 ports, including 14 designated major ports, while new deep-water facilities are planned at Vadhavan in Maharashtra and Galathea Bay in Great Nicobar Island.

The scheme is expected to create about 3,000 direct and more than 50,000 indirect jobs across steel, components and logistics, according to a shipping ministry statement on 28 October.

It is also expected to support ancillary industries such as corner castings, specialised steel, wooden frames and paints. The government estimates that the scheme will generate about ₹75,000 crore in economic output by FY40, more than seven times the support provided.

About the Author

Manas is a New Delhi-based journalist with Mint, where he covers the intersection of economic policy, industry, and emerging sectors shaping India’s growth. He writes on government regulation, manufacturing, and the clean energy transition, with particular depth in areas such as electric mobility, battery ecosystems, and rare-earth supply chains. He has written on India’s efforts to build domestic capacity in electric vehicles and energy storage, as well as the broader push to reduce import dependence and strengthen supply chain resilience. His reports are not limited to capturing the headline; they also aim to explain complex policy simply.<br><br>Manas has studied law in Pune, the city where he grew up, followed by a business journalism diploma from the Asian College of Journalism in Chennai. In his almost two years of being a correspondent for Mint, Manas has reported as major wars unfolded, a general election brought surprises for both the ruling party and the Opposition, and three Union Budget announcements where India has charted its economic course for the days to come.<br><br>On vacation, Manas plays bass guitar with his friends in Space & Co, their jam-rock band. He also likes cats, and occasions of late-night snacking.