The Union Cabinet has approved the Container Manufacturing Promotion Scheme (CMPS) with a budgetary outlay of Rs 10,000 crore up to FY 2039-40, giving India's manufacturing and logistics founders a major new policy tailwind. The decision was taken on 28 October 2026, and the scheme was first announced in the Union Budget 2026-27.

What the scheme funds

The goal is to build a globally competitive domestic container industry and cut dependence on imports. India aims to raise annual container-making capacity nearly tenfold, from about 75,000 units today to 7.5 lakh twenty-foot equivalent units (TEUs) a year. The scheme supports new factories and expansion of existing units, and is expected to create about 3,000 direct jobs and more than 50,000 indirect jobs.

The money is split across four components. Interest Subvention Assistance carries Rs 859 crore for a 3% per annum interest subsidy on term loans for capital expenditure. Operational Expenditure Assistance, at Rs 8,891 crore, bridges the cost gap for containers manufactured to global shipping standards and sold by eligible makers. Testing and certification assistance of Rs 150 crore funds shared facilities such as dynamic longitudinal impact testing, alongside land-leasing support.

Eligibility

Eligibility covers container manufacturers setting up greenfield facilities or expanding existing brownfield capacity, with support also flowing to ancillary industries such as specialised steel, wooden frames, corner castings and paints. Union Minister Ashwini Vaishnaw noted that about 95% of global container production is concentrated in one country, making India an alternative manufacturing destination a supply-chain priority.

How to apply

How to apply for the Container Manufacturing Promotion Scheme will be set out in guidelines to be notified after the Cabinet approval; no application portal was named in the approval reports. Founders should watch Press Information Bureau notifications for the application route.

Why it matters for founders

A Rs 10,000 crore manufacturing scheme changes the maths for hardware and logistics founders: subsidised capital, per-unit operating support and shared testing cut the cost of building in India, so a domestic container play — or a supplier into it — is worth a serious look while the guidelines are being written.