News / India to splash out to boost container trade and connectivity

India is rapidly stepping up plans to boost its container trade as it anticipates stronger economic growth from diversifying supply chains and a wave of global free-trade partnerships.

In its federal budget programme for the fiscal year 2026-27, New Delhi yesterday announced a series of maritime-related investment plans.

Most notably, some $1.1bn into ocean container manufacturing, the supply of which is historically controlled by China.

At present, India has the capacity to produce some 30,000 containers – in comparison with 5 million made in China, available data indicates.

“A scheme for container manufacturing is announced to create a globally competitive ecosystem over a five-year period,” the announcement said.

Equipment demand for Indian exports is generally met through empty-repositioning by carriers, so availability remains exposed to global supply chain dynamics and adds to shippers’ logistics costs.

“The allocation for domestic container manufacturing directly addresses a critical supply chain vulnerability, while digital customs, AI-enabled inspections and modern warehousing will materially reduce dwell time and improve cargo predictability,” said Rizwan Soomar, DP World’s CEO and MD MENA.

The budget also includes substantial capital outlay for the development of rail freight networks, inland waterways, and multimodal transport ecosystems.

Projects on the table include a dedicated freight corridor between Dankuni, in eastern India, to Surat in the west, some 20 inland waterway connections over countrywide river routes to be operational over the next five years.

More domestic freight movement along navigable waterways will hand stakeholders an opportunity to reduce logistics costs and drive broader green transport goals, sources believe.

“This budget takes a decisive step towards strengthening India’s end-to-end trade and logistics ecosystem,” Mr Soomar noted.

“Sustained investments in freight corridors, inland waterways and ship-repair capabilities reinforce India’s ambition to become a globally competitive, resilient and sustainable logistics gateway.”

Ketan Kulkarni, MD and CEO at Mumbai-based Allcargo Logistics, added: “The focus on multimodal infrastructure, including new freight corridors, inland waterways, cargo movement projects and last-mile connectivity for remote regions, will be critical in improving efficiency and lowering logistics costs.”

SC Ralhan, president of the Federation of Indian Export Organisations, said infrastructure expansion combined with other policy reforms would provide exporters with a stable and predictable policy environment in the long term.

The strong thrust on manufacturing, MSMEs, infrastructure and services, backed by meaningful tax and customs reforms, would enable Indian exporters to integrate more deeply and competitively with global value chains, he added.

The government push comes as container lines are increasingly adopting integrated, end-to-end logistics operations amid evolving shipper demands.

The budget ambitions build on a new domestic container line venture,  Bharat Container Shipping Line (BCSL), New Delhi has already placed on its priority agenda to rein-in the dominance of foreign flag-carriers in the shipping market.