Despite all the ports, India will begin making shipping containers only now

The Indian government is leaving no stone unturned to transform the country into world’s manufacturing hub. In a new plan, the government now wants to make shipping containers in India.

India relies on imports and orders Twenty feet Equivalent Units (TEUs) from China, Korea and many European countries. The country's largest container facility is at Jawaharlal Nehru Port and has a capacity of 4 million TEUs.

There is handful of container shipping lines in India. "In the short term there may be a cost disadvantage but in the long term this will pay off as trade is getting more containerised," Vishwas Udgirkar, senior director, Deloitte India, told Economic Times.

Meanwhile, officials told ET that the government would soon appoint a consultant to undertake a survey into the capacity available within the country to take up container manufacturing.

If needed, technological experts overseas would be consulted as well in building specialised containers.

Reportedly, container trade in India is growing at over 12% a year. JNPT handles 56% of the total containers, followed by the Chennai port which handles 25% of such cargo.

"There are many companies in the public sector which have idle capacity and can get into these new areas of manufacturing for their own and country's benefit," a senior government official told the financial daily.

"It is good that we want to move as much manufacturing to India as we can but we should examine the underlying economics of doing so. Volumes for containers need to catch up for anyone to set up a facility," Hemant Bhatt, chief executive officer, HMSA consultancy services LLP told ET.

Also, India plans to create trans-shipment hubs on its coastline.

(Image: Indiatimes)