NEW DELHI: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved three major schemes aimed at strengthening India’s manufacturing capabilities, promoting employment and exports and improving grassroots governance.
The initiatives include the Container Manufacturing Promotion Scheme (CMPS), the Khelo India Sports Goods Manufacturing Scheme and the Pradhan Mantri Viksit Gram Swaraj Yojana (PM VGSY) with substantial financial allocations and long-term implementation plans, as the schemes seek to advance the vision of Make in India, Atmanirbhar Bharat and Viksit Bharat@2047.
Approval has been granted to the Container Manufacturing Promotion Scheme with a budgetary allocation of Rs 10,000 crore up to financial year 2039–40. The initiative aims to increase India’s annual container manufacturing capacity nearly tenfold to 7.5 lakh twenty-foot equivalent units (TEUs), establish a globally competitive domestic industry and reduce dependence on imports.
Announcing the decision, Union Minister Ashwini Vaishnaw highlighted the strategic importance of shipping containers in international trade, noting that approximately 95 percent of global container production is concentrated in one country.
“Developing India as an alternative manufacturing destination would diversify global supply chains, improve resilience and strengthen the India’s maritime and logistics infrastructure,” he said.
Under the scheme financial assistance assistance will be provided through three components including interest Subvention Assistance, operational expenditure assistance and testing and certification support.
“An allocation of Rs 859 crore will finance annual interest subvention of 3 percent on eligible term loans for new manufacturing facilities and the expansion of existing units. Another Rs 8,891 crore will support eligible manufacturers by helping bridge production-cost differences for containers meeting international shipping standards. The remaining Rs 150 crore will fund testing and certification facilities, including dynamic longitudinal impact testing,” the Minister said.
The initiative is expected to generate around 3,000 direct jobs and more than 50,000 indirect employment opportunities while stimulating associated industries such as specialised steel, corner castings, wooden frames and paints. Ultimately, it seeks to position India as a reliable global supplier of quality shipping containers and strengthen supply-chain security, he said.
Meanwhile, the Khelo India Sports Goods Manufacturing Scheme, with an outlay of Rs 1,856.67 crore for the period 2026–27 to 2033–34 is aimed at making India a major producer. “Announced in the Union Budget 2026–27, the initiative aims to develop a globally competitive sports goods industry through investment promotion, technology adoption, research, innovation, skill development and export expansion,” Vaishnaw said.
“A major feature is the creation of dedicated Sports Goods Manufacturing Zones (SGMZs), developed in coordination with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks. These integrated clusters will bring manufacturers, suppliers, testing laboratories, design and prototyping centres, and ancillary businesses together to improve efficiency and strengthen industry linkages,” the Minister said.
According to a government release, the scheme “will encourage leading Indian and international manufacturers, brands and retail chains to establish production facilities through anchor investment and turnover-linked support”. These components, with a combined allocation of Rs 1,130 crore, are intended to expand capacity, attract private investment, increase domestic value addition and reduce import dependence, it added.
The scheme also prioritises research and development through Centres of Excellence at leading educational and research institutions, collaboration with the Anusandhan National Research Foundation and assistance for start-ups under the Startup India initiative.
In another significant decision, the Cabinet also approved the Pradhan Mantri Viksit Gram Swaraj Yojana, a Centrally Sponsored Scheme with a total outlay of Rs 7,395.55 crore for 2026–27 to 2030–31, corresponding to the Sixteenth Finance Commission period. The funding comprises Rs 4,869.48 crore from the Centre and Rs 2,526.07 crore from the States.
“The scheme will cover more than 2.55 lakh Panchayats and Traditional Local Bodies across States and Union Territories, directly benefiting approximately 32 lakh elected representatives, Panchayat functionaries and other stakeholders. Public awareness campaigns are expected to reach at least one crore citizens per coordinated exercise,” the Minister said.
Its principal objective is to transform Gram Panchayats into more effective, transparent and participatory institutions of local governance. At least 2.55 lakh comprehensive Gram Panchayat Development Plans will be prepared annually through the eGramSwaraj Portal, integrating local priorities, government programmes and available financial resources.
Implementation will be coordinated by state governments and UT administrations through annual action plans reviewed by the designated Central Empowered Committee. The scheme will also cover traditional rural local government institutions in areas without Panchayats under Part IX of the Constitution. No permanent posts will be created, although contractual personnel may be engaged where technical assistance is required, the government said in a statement.