India Approves Plan for Domestic Shipping Line in Broad Container Ecosystem
The government of India oversaw the formal signing of agreements on February 3, which set out the plans for the country’s new domestic container shipping line to be known as Bharat Container Shipping Line (BCSL). It is one key element of Prime Minister Narendra Modi’s broader vision for a self-reliant container ecosystem to lessen India’s dependence on foreign carriers and drive job growth and the economy.
The memorandum of understanding for the new container line was signed by the leading players in India and overseen by the Minister for Ports, Shipping, and Waterways. Among the participants in the effort are Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Jawaharlal Nehru Port Authority, V.O. Chidambaranar Port Authority (VOCPA), Chennai Port Authority, and Sagarmala Finance Corporation Limited (SMFCL).
India has been moving toward the formation of the new shipping company as a means of expanding Indian-flag shipping to handle exports. The plan was outlined in 2025 as part of the broader scheme to support the Indian economy and is in line with the Made in India initiatives, placing India’s container trade in Indian hands.
The Economic Times has reported that the government plans to order 15 domestically built containerships in FY 2026-2027. It is part of a Phase 1 initiative that envisions 51 vessels within five years. Initially, it would focus on service to Asia, West Asia, and the Red Sea and later expand to include Europe, Africa, and the Americas.
The plans for the new line, along with changes in India’s cabotage regulations, have also driven the international carriers to build their Indian operations. CMA CGM, Maersk, and MSC Mediterranean Shipping each announced in 2025 plans to reflag vessels in India.
The government is reportedly prepared to invest nearly $6.5 billion in the launch of the shipping line. Officials said it will become the backbone of India’s import and export logistics strategy.
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At the same time, several other initiatives were formalized with new agreements. India wants to start a container manufacturing operation able to produce one million TEU annually. The government has outlined a $1 billion container manufacturing assistance scheme over the next five years.
A further $1.6 billion was earmarked for eligible projects designed to increase port capacity tied to the launch of the container ecosystem and the shipping line. One project that will be financed is the outer harbor project by the VO Chidambaranar Port Authority. It will also involve the Indian Railway Finance Corporation as part of a coordinated effort between shipping, ports, and rail-linked logistics.