Can India Finally Break China's 97% Grip on Shipping Containers? Here's Why It Matters

India has unveiled its first export-import (EXIM) shipping container designed for international use, marking a significant step towards reducing its dependence on China, which controls an estimated 90-97 per cent of global shipping container production.

For decades, Indian exporters relied almost entirely on Chinese-made containers, leaving the country's trade ecosystem vulnerable to supply disruptions.

The Covid-19 pandemic exposed this weakness as container shortages and soaring freight rates disrupted global supply chains, prompting policymakers to view container manufacturing as a strategic necessity rather than a low-priority industry.

To address this, the Union Budget announced a Rs 10,000 crore Container Manufacturing Promotion Scheme.

The initiative provides capital support for new manufacturing facilities, expansion assistance for existing units and operational incentives to offset higher production costs. It also funds research, testing, technology development and workforce skilling to build a competitive domestic manufacturing ecosystem.

However, competing with China remains a challenge. Indian-made containers currently cost 30-40 per cent more, translating into a price difference of $700-$1,000 per container.

Chinese manufacturers enjoy significant advantages through economies of scale, highly automated factories and integrated supply chains for steel and specialised components. Indian producers continue to grapple with higher land costs, smaller production volumes and lower levels of automation.

The industry's breakthrough came with global shipping major AP Moller-Maersk, which partnered with the DCM Shriram Group to manufacture prototype EXIM containers in India, the report said.

After inspecting and validating the production facilities, Maersk approved the containers and unveiled the first India-made EXIM container in Dadri, Uttar Pradesh. The company has also placed an order for 1,000 additional containers, providing manufacturers with the commercial scale needed to expand production.

The government's ambitions extend well beyond import substitution. A domestic container manufacturing industry is expected to boost sectors such as steel, fabrication, specialised coatings and container components while creating thousands of direct and indirect jobs.

It also complements India's broader push to strengthen ports, logistics and shipbuilding under its maritime development strategy.

If India succeeds in scaling production and narrowing costs, it could gradually emerge as an alternative supplier in a market that has long been dominated by China.