1. Recent Developments:
- The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026, with a total outlay of ₹1,856.67 crore for FY 2026–27 to FY 2033–34. Announced in the Union Budget 2026–27, the scheme aims to attract private investment, expand domestic production, reduce import dependence, promote innovation and strengthen India’s integration into global sports goods value chains.
- The scheme connects sports development with industrial growth by supporting manufacturing infrastructure, technology adoption, research and development, skill development, quality certification and export promotion. It complements Khelo India, Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat.
2. Key Features of the Khelo India Sports Goods Manufacturing Scheme:
Integrated Sports Goods Manufacturing Zones:
- The scheme envisages dedicated Sports Goods Manufacturing Zones (SGMZs) that will bring manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises together.
- These zones will be developed through convergence with BHAVYA and National Industrial Corridor Development Corporation (NICDC) industrial parks, enabling shared infrastructure, stronger supplier networks and improved manufacturing efficiency.
Investment and Production Support:
- Two major incentive components have a combined outlay of ₹1,130 crore:
- Anchor Investment Support: Provides 20% capital expenditure support to anchor investors committing at least ₹100 crore within designated manufacturing zones.
- Turnover Linked Support: Offers incentives of up to 15% to eligible manufacturers investing at least ₹10 crore, encouraging higher production and capacity expansion.
- These incentives are expected to attract domestic and global manufacturers, increase domestic value addition, generate employment and reduce import dependence.
MSME, Quality and Innovation Support:
- Existing manufacturing clusters will receive support for upgrading common facilities and shared infrastructure through cost-sharing with States, strengthening the capabilities of smaller enterprises.
- An allocation of ₹105 crore will support certification from International Sports Federations, covering 70% of first-time certification costs and 50% of renewal costs.
- Centres of Excellence in educational and research institutions will promote research in sports equipment, material sciences, protective gear and advanced manufacturing technologies. Convergence with the Anusandhan National Research Foundation (ANRF) will strengthen industry–academia collaboration.
- Eligible Department for Promotion of Industry and Internal Trade (DPIIT)-registered sports start-ups can receive grants of up to ₹20 lakh for product development, testing, validation and commercialisation.
Skills and Export Promotion:
- Skill development will be undertaken with the Ministry of Skill Development and Entrepreneurship and industry stakeholders to address changing manufacturing requirements.
- An India Sports Expo, a Brand India campaign and convergence with the Export Promotion Mission will support international branding, market access and connections with overseas buyers.
3. Status and Potential of India’s Sports Goods Industry:
Manufacturing Base and MSME Participation:
- Jalandhar (Punjab) and Meerut (Uttar Pradesh) are the principal sports goods manufacturing clusters. Together, they have more than 250 exporting units, over 1,000 domestic-market units, more than 4,000 micro enterprises and nearly 20,000 household units.
- Other important centres include Ludhiana for bicycles and Delhi and Mumbai for sports accessories and apparel. Small and micro enterprises account for nearly 90% of production, making the sector important for local employment and entrepreneurship.
- India manufactures cricket bats, protective equipment, inflatable balls and gym and athletic training equipment. Indian manufacturers and brands account for an estimated 75–80% of the global cricket bat market and around 30–35% of the cricket helmet market.
Domestic Market and Export Opportunity:
- India’s domestic sports goods market is estimated at US$2.5 billion, including approximately US$0.5 billion in equipment. The global sports equipment market was valued at around US$140 billion in 2024 and is projected to reach approximately US$283 billion by 2036.
- Global sports equipment exports stood at approximately US$52 billion in 2024, while India’s equipment exports were around US$275 million, representing a relatively small share of international trade.
- The United Kingdom, United States and Australia together account for more than half of India’s sports equipment exports, indicating established access to major overseas markets.
- A NITI Aayog study identifies the potential for India’s sports equipment exports to reach approximately US$8.1 billion by 2036, with nearly 54 lakh additional direct and indirect jobs. These are projected opportunities, not assured outcomes.
Major Sporting Events as Market Opportunities:
- The Los Angeles Olympics 2028, Commonwealth Games 2030 in Ahmedabad, Brisbane Olympics 2032 and India’s planned bid for the 2036 Olympic Games could create demand for sports equipment and provide opportunities for Indian manufacturers to enter international procurement networks.
4. Challenges Facing India’s Sports Goods Industry:
- High input costs: Dependence on imported specialised materials such as carbon fibre, advanced polymers and technical textiles increases production costs and exposes manufacturers to global supply disruptions.
- Technology and scale constraints: Fragmented production, limited mechanisation and dependence on imported machinery restrict productivity, product innovation and economies of scale.
- Inadequate testing and certification infrastructure: Manufacturers often depend on overseas laboratories for internationally recognised testing, increasing costs and delaying market entry. These barriers disproportionately affect MSMEs.
- Infrastructure and logistics gaps: High land costs, fragmented industrial premises, inadequate common facilities and inefficient transport increase production and delivery costs.
- Limited global branding and market integration: Indian manufacturers have relatively weak links with international brands, sporting federations and global procurement networks, limiting their access to high-value markets.
- Product concentration: India’s established strength in cricket equipment has not translated into comparable competitiveness across several other sports categories, indicating a need for product diversification.
5. Government Initiatives Supporting the Manufacturing Ecosystem:
Industrial Infrastructure and Investment:
- Bharat Audyogik Vikas Yojna (BHAVYA): Provides for 100 plug-and-play industrial parks with an allocation of ₹33,660 crore. Ready-built factory infrastructure, testing facilities and warehousing can support integrated sports goods manufacturing zones.
- NICDC: Its industrial corridor programme covers 20 industrial smart cities across 13 States, with four completed as of September 2026. These industrial locations can provide connectivity, utilities and logistics infrastructure for manufacturers.
Research, Innovation and Entrepreneurship:
- Anusandhan National Research Foundation: Promotes collaboration among research institutions, universities and industry, supporting research in advanced materials, equipment design and manufacturing technologies.
- Startup India: Supports entrepreneurship through funding and investment facilitation. As of 31 March 2026, India had over 2.23 lakh recognised start-ups, which had generated more than 23.36 lakh direct jobs. The sports goods scheme complements this ecosystem through dedicated innovation support.
Export and Manufacturing Promotion:
- Export Promotion Mission: With an outlay of ₹25,060 crore for FY 2025–26 to FY 2030–31, it supports export finance, quality compliance, logistics and international market access, particularly for MSMEs. Its two components are Niryat Protsahan (financial support) and Niryat Disha (non-financial export enablers).
- Production Linked Incentive (PLI) Schemes: These schemes promote investment and increased production across 14 designated sectors. By June 2026, they had attracted ₹2.6 lakh crore in investment, generated ₹23.8 lakh crore in production and sales, supported exports exceeding ₹15.5 lakh crore and created 14.6 lakh jobs. Sports goods are not a separately designated PLI sector.
6. Linkages with India’s Sports Development Policies:
Khelo India Scheme:
- Launched in 2017, the scheme integrated the Rajiv Gandhi Khel Abhiyan, Urban Sports Infrastructure Scheme and National Sports Talent Search Scheme under a common framework.
- Its five pillars are talent identification, capacity building, sports science and technology, competitions and leagues, and sports infrastructure.
- As of July 2026, 349 sports infrastructure projects had been approved with an investment of ₹3,176 crore. The programme also supported 1,067 Khelo India Centres, 267 academies and 2,745 Khelo India Athletes through coaching, equipment, medical care and monthly allowances.
Khelo Bharat Niti 2025:
- Launched in July 2025, the policy recognises sport as an instrument of nation-building, economic development and social inclusion, aligned with the vision of Viksit Bharat.
- Its five pillars are excellence on the global stage, sports for economic development, sports for social development, sports as a people’s movement, and integration of sports with education.
- It emphasises grassroots-to-elite talent development, rural and urban sports infrastructure, wider participation of women and marginalised groups, and integration of sports into education under the National Education Policy 2020.
- The manufacturing scheme strengthens the policy’s economic-development dimension by connecting sports participation with production, innovation, entrepreneurship and exports.
7. Way Forward:
- Modernise existing clusters: Upgrade Jalandhar and Meerut through common facility centres, shared machinery, modern industrial premises and improved logistics.
- Strengthen domestic supply chains: Encourage domestic production of specialised materials, advanced polymers and composites to reduce import dependence and improve cost competitiveness.
- Build globally recognised testing facilities: Establish accredited laboratories and certification centres in manufacturing clusters through partnerships with international sports federations.
- Promote technology and design: Strengthen research collaboration among manufacturers, universities, research institutions, athletes and sports federations to develop high-performance products.
- Improve export readiness: Diversify products and export destinations, build globally recognised Indian brands and integrate MSMEs into international supply chains.
- Develop industry-aligned skills: Expand training in precision manufacturing, materials science, product design, quality control and advanced production technologies.
8. Value Addition for UPSC:
- GS Paper III – Indian Economy: Manufacturing competitiveness, MSME development, industrial clusters, employment generation, export promotion and global value chain integration.
- GS Paper III – Science and Technology: Advanced materials, sports technology, product innovation, testing and certification infrastructure, and industry–academia collaboration.
- GS Paper II – Government Policies and Interventions: Khelo Bharat Niti 2025, Khelo India, Startup India, BHAVYA and Export Promotion Mission.
- Important institutional linkages: Ministry of Youth Affairs and Sports, DPIIT, NITI Aayog, ANRF, NICDC and Ministry of Skill Development and Entrepreneurship.
Conclusion: The Khelo India Sports Goods Manufacturing Scheme can help India convert its established manufacturing clusters and expanding sporting ecosystem into a globally competitive industry. Its success will depend on technology upgradation, affordable inputs, recognised testing facilities, MSME modernisation and stronger international market linkages, contributing to Make in India and Viksit Bharat@2047.
