Policy Update
Tanisha Hooda
Background
Shipping containers are an essential part of modern trade because they allow goods to move smoothly between ships, trains and trucks without being repeatedly unloaded and repacked. As India’s manufacturing and international trade have expanded, its requirement for these containers has also increased. However, India remains significantly dependent on imported empty containers, with nearly two million units being imported annually (Ministry of Ports, Shipping and Waterways, 2026). This dependence can create problems when global shipping routes are disrupted or freight costs rise, making a stronger domestic container manufacturing industry increasingly important.
To address this gap, the Government of India announced the Container Manufacturing Assistance Scheme (CMAS) in the Union Budget 2026–27, with an allocation of ₹10,000 crore over five years (Ministry of Finance, 2026). The scheme aims to build a competitive container manufacturing ecosystem within India by supporting domestic production, investment and technology development. It will support both the establishment of new manufacturing facilities and the expansion of existing units, along with testing infrastructure, skill development and capacity building (Press Information Bureau, 2026).
While CMAS was formally announced in the Union Budget 2026–27, progress in domestic container manufacturing was already visible during 2026. In July 2026, India rolled out its first domestically manufactured EXIM shipping container for A.P. Moller–Maersk, produced in accordance with internationally accepted ISO specifications and the International Convention for Safe Containers (CSC) (Ministry of Ports, Shipping and Waterways, 2026).
The scheme aims to develop an annual domestic container manufacturing capacity of up to 7.5 lakh Twenty-foot Equivalent Units (TEUs). In simple terms, a TEU is the standard unit used to measure container capacity based on a 20-foot shipping container. By increasing domestic production, CMAS seeks to reduce dependence on imported containers, make container availability more reliable and strengthen India’s supply chains. The initiative also complements broader programmes such as Make in India, Maritime Amrit Kaal Vision 2047, PM Gati Shakti, the National Logistics Policy and Sagarmala.
The benefits are expected to extend beyond shipping and logistics. CMAS has the potential to create around 3,000 direct and more than 50,000 indirect jobs (Ministry of Ports, Shipping and Waterways, 2026), while also supporting related industries producing materials and components such as Corten steel (weathering steel), corner castings and wooden frames. The scheme therefore seeks not only to address container shortages but also to strengthen domestic manufacturing, employment and India’s long-term competitiveness in global trade.
Functioning
1. Financial Support for Domestic Container Manufacturing: CMAS will provide financial support to strengthen domestic container manufacturing through assistance for establishing new Greenfield manufacturing facilities and expanding existing Brownfield units. In simple terms, the government wants to make it easier for Indian companies to increase container production within the country. The total scheme outlay of ₹10,000 crore over five years is intended to support both capital incentives for Greenfield and Brownfield manufacturing facilities and non-capex components, including testing infrastructure, skill development and capacity building; therefore, the entire outlay should not be interpreted as direct production or capital subsidy to manufacturers (Ministry of Ports, Shipping and Waterways, 2026). The broader aim is to develop a domestic container manufacturing ecosystem that can compete at the global level.
2. Implementation and Current Status: CMAS is currently at the appraisal stage. According to the Ministry of Ports, Shipping and Waterways’ Rajya Sabha reply dated 17 March 2026, the Ministry has initiated the appraisal process for the scheme. Thus, as of March 2026, CMAS remained at the pre-implementation appraisal stage. Consequently, quantitative operational targets, including annual or phase-wise capacity additions towards the proposed 7.5 lakh TEU annual manufacturing capacity, should be treated as indicative rather than binding until the required expenditure and final government approval processes are completed (Ministry of Ports, Shipping and Waterways, 2026). Detailed implementation provisions, including eligibility conditions, the process for receiving incentives and disbursement timelines, were yet to be fully established. Therefore, the actual impact of CMAS can be properly evaluated only after these details are finalised and the scheme moves from appraisal to implementation.
3. Operational Support to Improve Competitiveness: CMAS is not limited to helping manufacturers set up factories. The scheme also aims to improve the competitiveness of domestic container manufacturing by supporting investment, technology development and the expansion of manufacturing capacity. This is important because Indian manufacturers need to produce containers that can compete effectively in domestic and international markets. Technology support and other competitiveness measures will therefore need to address the cost disadvantages faced by Indian manufacturers relative to established global producers, particularly China, which benefits from large-scale production and an integrated supply chain for key inputs such as Corten steel (weathering steel) and specialised container fittings. Addressing these structural cost constraints alongside capacity expansion can help strengthen the industry beyond the initial investment stage and contribute to the development of a more competitive container manufacturing ecosystem in India.
4. Testing, Skill Development and Capacity Building: The scheme supports testing infrastructure, skilling and capacity building to help domestic manufacturers meet required standards. Containers used in international trade must comply with applicable ISO structural and dimensional standards as well as the mandatory safety requirements of the International Convention for Safe Containers (CSC). This dual compliance was demonstrated by the first India-manufactured EXIM container rolled out in July 2026 (Ministry of Ports, Shipping and Waterways, 2026).
5. Integration with India’s Wider Logistics Network: CMAS forms part of a broader strategy to develop an integrated maritime and logistics ecosystem, alongside initiatives such as the Bharat Container Shipping Line (BCSL), PM Gati Shakti, the National Logistics Policy and the Sagarmala Programme. Coordination with BCSL is particularly important as the state-backed national carrier can act as a captive demand driver by generating orders for domestically manufactured containers. Together, these initiatives can strengthen connectivity across ports, railways, highways and industrial centres and support the growth of domestic container manufacturing.
Performance
As CMAS is still at an early stage of implementation, its actual performance cannot yet be fully assessed. The indicators below therefore serve primarily as baseline measures against which the scheme’s projected performance can be evaluated over time. Each indicator is included based on its relevance to the scheme’s objectives, such as reducing import dependence, expanding domestic manufacturing capacity, generating employment and improving cost competitiveness.
1. Growth in Domestic Container Manufacturing: Domestic manufacturing of shipping containers in India has remained limited. The maximum domestic production recorded was approximately 24,000 TEUs in FY2024, equivalent to only about 1.2% of India’s annual import requirement of nearly 2 million empty containers, highlighting the significant domestic capacity gap. This provides a useful baseline for assessing future capacity expansion under CMAS.
Table 1: Maximum Domestic Production of Shipping Containers in India, FY2024
| Indicator | Financial Year | Production |
| Maximum Domestic Container Production Recorded | FY2024 | 24,000 TEUs |
Source: Ministry of Ports, Shipping and Waterways, Lok Sabha, 2026.
The data indicates that India’s domestic container manufacturing base was relatively limited. At the same time, recent government statements indicate that domestic container manufacturing is beginning to scale up.
2. Growth in Container Traffic at Major Ports: Container traffic at India’s Major Ports increased from 9.61 million TEUs in 2020–21 to 12.31 million TEUs in 2023–24, representing growth of about 28.1% and indicating rising container demand. However, these figures cover only Major Ports and exclude non-major/private ports, including major container-handling facilities such as Mundra, and therefore understate nationwide container demand. This indicator provides a baseline for assessing the growing market potential for domestically manufactured containers under CMAS.
Figure 1: Growth in Container Traffic at Major Ports in India, 2020–21 to 2023–24
Source: Ministry of Ports, Shipping and Waterways, Annual Report 2024–25.
The figure shows a clear increase in container traffic at Major Ports, from 9.61 million TEUs in 2020–21 to 12.31 million TEUs in 2023–24. This represents an increase of approximately 28.1% over the period. The rising volume of containerised cargo indicates growing demand for shipping containers in India. In the context of CMAS, this trend highlights the importance of expanding domestic container manufacturing capacity to meet increasing requirements and reduce dependence on imported containers.
3. Operational Efficiency in Handling Container Ships: The efficiency of container vessel handling at Major Ports is another relevant indicator of India’s container logistics ecosystem. According to the Annual Report 2024–25, the average turnaround time of container vessels was 30.12 hours in 2023–24 and 30.40 hours in 2024–25. Turnaround time measures the time taken by a vessel during its stay at a port and therefore provides an indication of port operational efficiency.
Figure 2: Average Turnaround Time of Container Vessels at Major Ports, 2023–24 and 2024–25
Source: Ministry of Ports, Shipping and Waterways, Annual Report 2024–25.
The figure shows that the average turnaround time of container vessels increased marginally from 30.12 hours in 2023–24 to 30.40 hours in 2024–25, indicating broadly stable performance over the period. For CMAS, efficient port operations are an important complementary factor, as increasing domestic container availability alone may not improve the container logistics system unless containers and vessels can also move efficiently through ports.
4. Expansion of Port Capacity and Cargo Handling: Between FY2021 and FY2024, capacity at India’s Major Ports increased from 1,560.61 to 1,629.86 million tonnes (4.4%), while cargo traffic rose from 672.68 to 819.29 million tonnes (21.8%). The faster growth in cargo traffic indicates rising utilisation of existing port infrastructure, which could create logistics constraints if port capacity expansion does not keep pace with future container manufacturing and trade growth. This indicator therefore helps assess whether supporting port infrastructure can accommodate the projected expansion under CMAS.
Figure 3: Trends in Capacity and Traffic Handled at Major Ports, 2020–21 to 2023–24
Source: Ministry of Ports, Shipping and Waterways, Annual Report 2024–25.
The figure shows an expansion in port capacity and cargo traffic at India’s Major Ports. Between 2020–21 and 2023–24, port capacity increased from 1,560.61 million tonnes to 1,629.86 million tonnes (4.4%), while cargo traffic increased from 672.68 million tonnes to 819.29 million tonnes (21.8%). The faster growth in cargo traffic indicates rising utilisation of existing port infrastructure, which could create logistics constraints if capacity expansion does not keep pace with future container production and trade growth. This indicator is therefore relevant for assessing whether port infrastructure can support the projected expansion in domestic container manufacturing under CMAS.
However, as CMAS is currently at the appraisal stage, its actual performance cannot yet be assessed. The indicators used in this section serve as baseline measures of existing manufacturing capacity, container demand and supporting logistics infrastructure, providing a basis for assessing the scheme’s projected performance once implementation begins.
Impact
1. Impact on Domestic Container Manufacturing: CMAS is expected to expand India’s domestic container manufacturing capacity. With an outlay of ₹10,000 crore over five years and a target of up to 7.5 lakh TEUs of annual capacity, the scheme can encourage both new manufacturing units and expansion of existing facilities. The targeted capacity is equivalent to about 37.5% of India’s current annual imports of nearly 2 million empty containers. Therefore, CMAS should be viewed as enabling substantial import substitution rather than complete self-reliance in container supply.
2. Impact on Import Dependence and Supply-Chain Resilience: India currently imports nearly 2 million empty containers annually for domestic requirements and repositioning. Greater domestic production under CMAS can reduce this dependence and exposure to global freight-rate fluctuations and supply-chain disruptions. For exporters, greater local availability can also reduce the deadweight freight cost associated with repositioning empty containers from overseas locations, improving the reliability and cost efficiency of export logistics.
3. Impact on Employment and Ancillary Industries: The scheme is expected to create around 3,000 direct jobs and more than 50,000 indirect jobs across container manufacturing and related activities. Its impact can also extend to ancillary industries supplying Corten steel (weathering steel), corner castings and marine-grade plywood flooring. Therefore, CMAS can support employment and the development of a wider domestic manufacturing ecosystem around container production.
4. Impact on Global Competitiveness and Export Potential: CMAS focuses not only on increasing production but also on improving the quality and competitiveness of Indian-made containers. The rollout of the first India-manufactured EXIM container meeting ISO and CSC requirements demonstrates compliance with internationally recognised standards. The subsequent order for 1,000 additional Made-in-India containers represents more than 4% of the approximately 24,000 TEUs of domestic production recorded in FY2024, providing an early indication of commercial traction. This can create opportunities for India to participate more actively in the global container manufacturing market.
5. Impact on India’s Maritime and Logistics Ecosystem: CMAS is being developed alongside initiatives such as the Bharat Container Shipping Line (BCSL), PM Gati Shakti, the National Logistics Policy and Sagarmala. BCSL can provide a state-backed source of captive demand for domestically manufactured containers, helping de-risk initial manufacturing runs and providing manufacturers with a more predictable demand base. Together with expanding port infrastructure and multimodal connectivity, this can strengthen India’s wider maritime manufacturing and logistics ecosystem.
Emerging Issues
1. Limited and Evolving Container Manufacturing Ecosystem: India’s container manufacturing and associated inspection ecosystem is still evolving. Domestic manufacturers also face input-cost disadvantages, particularly for Corten steel (weathering steel) and specialised castings, compared with established manufacturing clusters such as China. Strengthening domestic supply chains, technical capacity and manufacturing infrastructure will therefore be important for improving competitiveness under CMAS.
2. Container Shortage and Supply-Side Vulnerability: Container shortages have affected India’s EXIM trade and contributed to higher freight costs, particularly during periods of global disruption. However, shortages can also arise from domestic inland repositioning imbalances, where empty containers are not available at the locations and times required by exporters. Predictable procurement and more efficient repositioning of containers will therefore be important alongside increased domestic production.
3. Delays in Inspection and Certification: Efficient inspection and certification will be essential as domestic production expands. Containers must meet applicable ISO 1496 testing requirements as well as the safety requirements of the International Convention for Safe Containers (CSC), 1972. Delays in testing or certification could postpone deployment and reduce the benefits of increased manufacturing capacity.
4. Limited Certification Capacity: Large-scale manufacturing will require adequate authorised inspection and certification capacity. DGS Order No. 19 of 2022 authorised multiple Recognized Organisations to undertake container inspection and certification under the CSC framework. Maintaining sufficient certification capacity and consistent technical standards across these organisations will be important as production expands.
5. Maintaining Uniform Safety and Quality Standards: Maintaining uniform compliance with ISO and CSC requirements will be essential for the international acceptance of Indian-made containers. Non-standard or improperly issued CSC safety approval plates could result in containers being rejected by international shipping lines or port authorities. Standardised inspections, compliance monitoring and adequate testing infrastructure will therefore be necessary to ensure consistent safety and quality.
Way Forward
The successful implementation of CMAS will depend on moving quickly from the appraisal stage to notified operational guidelines that clearly define eligibility, incentives, disbursement mechanisms and implementation timelines, providing greater certainty for private investment. At the same time, predictable demand should be created through aggregated procurement commitments from anchor buyers such as CONCOR, BCSL and coastal shipping lines, helping manufacturers maintain capacity utilisation during the initial stages of production.
Improving cost competitiveness will also require addressing input-cost disadvantages. The government should review the duty structure on Corten steel (weathering steel), specialised castings and other critical components to prevent inverted-duty structures from making domestically manufactured containers less competitive. In parallel, globally accredited testing facilities should be developed in major coastal and manufacturing clusters to enable timely compliance with ISO 1496 and CSC requirements. Standardised inspection procedures and adequate certification capacity will also be necessary to reduce delays and minimise the risk of Indian-made containers being rejected in international markets.
Finally, CMAS should be closely coordinated with PM Gati Shakti, the National Logistics Policy, Sagarmala and BCSL so that manufacturing capacity develops alongside shipping demand, port infrastructure and multimodal connectivity. These measures can help translate the scheme’s ₹10,000 crore planned support into sustained production capacity, greater import substitution and a more competitive domestic container manufacturing ecosystem.
References
Press Information Bureau (PIB), 2026, Container Manufacturing Assistance Scheme: Building India’s Maritime Future, Government of India, 11 August 2026.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2297455®=48&lang=2
Ministry of Ports, Shipping and Waterways, 2026, Status of CMAS – Rajya Sabha Unstarred Question No. 2875, Government of India, Rajya Sabha, 17 March 2026.
https://sansad.in/getFile/annex/270/AU2875_nAmH3t.pdf?source=pqars&utm
Ministry of Ports, Shipping and Waterways, 2026, Domestic Manufacturers of Shipping Containers – Lok Sabha Unstarred Question No. 3540, Government of India, Lok Sabha, 13 March 2026.
https://sansad.in/getFile/loksabhaquestions/annex/187/AU3540_e0c91Z.pdf?source=pqals
Ministry of Ports, Shipping and Waterways, 2025, Annual Report 2024–25, Government of India, New Delhi.
https://shipmin.gov.in/sites/default/files/Annual%20Report%202024-25%20-%20English.pdf
Press Information Bureau (PIB), 2026, Container Manufacturing Assistance Scheme: Building India’s Maritime Future, Government of India, 11 August 2026.
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2297455®=48&lang=1
Directorate General of Maritime Administration (DGMA), 2022, DGS Order No. 19 of 2022: Inspection & Certification of Containers Manufactured in India, Government of India, 27 July 2022.
https://dgma.gov.in/mercantile-marine-law/mml-dgma-orders?archive=true
About the Contributor:
Tanisha Hooda is a Research Intern at the Impact and Policy Research Institute (IMPRI) and a B.A. (Hons.) Economics graduate from Manav Rachna International Institute of Research and Studies (MRIIRS), Faridabad. Her research interests include competition policy, digital economy, public policy, and economic development, with a focus on analysing the socio-economic implications of emerging policy frameworks.
Acknowledgement:
The author extends sincere gratitude to the reviewers, Sneha Kohli and Anushree Khare, and the IMPRI India team for their valuable guidance, support, and review of this Policy Update.
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organization.
Reviewed by Sneha Kohli and Anushree Khare
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