Why in News?

  • The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026; it was announced in the Union Budget 2026–27.
  • Objective: Strengthen domestic sports goods manufacturing, attract private investment, promote innovation, reduce import dependence and boost exports — positioning India as a globally competitive manufacturing hub.
  • It complements the Khelo India Scheme and Khelo Bharat Niti 2025 by linking sports development with industrial growth, skill development, employment and entrepreneurship.

Key Facts About the Scheme

  • Total outlay: ₹1,856.67 crore; implementation period FY 2026–27 to FY 2033–34.
  • Integrated manufacturing support: Converges investment, technology, innovation, skilling and market expansion into a single framework.
  • Global competitiveness: Aims at design, development and manufacture of high-quality, affordable sports goods and deeper integration into global value chains (GVCs).
  • Existing base: Established clusters such as Jalandhar (Punjab) and Meerut (Uttar Pradesh); Ludhiana for bicycles; Delhi and Mumbai for accessories and apparel.
  • MSME-led: Small and micro enterprises account for nearly 90% of production, making the sector a major source of local employment and entrepreneurship.

Key Interventions Under the Scheme

1. Integrated Sports Goods Manufacturing Zones (SGMZs)

  • Up to four zones, each exceeding 300 acres, developed through convergence with the BHAVYA Scheme and NICDC Industrial Parks.
  • Will co-locate manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary units.

2. Investment and Production Expansion (combined outlay ₹1,130 crore)

  • Anchor Investment Support: 20% capital expenditure support to anchor investors investing at least ₹100 crore within SGMZs.
  • Turnover-Linked Support: Incentives of up to 15% to manufacturers investing ₹10 crore or more.

3. Cluster and MSME Upgradation

  • Support for upgrading common facilities and shared infrastructure in existing clusters through cost-sharing with States.

4. International Certification Support (₹105 crore)

  • Covers 70% of first-time certification costs and 50% of renewal costs for certification from International Sports Federations — easing global market access.

5. Research and Start-up Innovation

  • Centres of Excellence in leading educational and research institutions for equipment, materials, protective gear and advanced manufacturing.
  • Convergence with ANRF for research co-funding; DPIIT-registered sports start-ups eligible for grants up to ₹20 lakh.

6. Industry-Aligned Skill Development

  • Programmes with the Ministry of Skill Development and Entrepreneurship (MSDE) and industry to build a workforce suited to sports goods manufacturing.

7. Global Promotion

  • India Sports Expo and Brand India campaign under the Export Promotion Mission for branding, outreach and market development.

Status of India's Sports Goods Industry

  • Cluster strength: Jalandhar and Meerut together have over 250 exporting units, 1,000 domestic-market units, 4,000 micro enterprises and nearly 20,000 household units.
  • Export markets: The UK, US and Australia account for over half of India's sports equipment exports.
  • Global dominance in segments: India holds an estimated 75–80% of the global cricket bat market and 30–35% of the cricket helmet market.
  • Cross-industry linkages: Draws on rubber, polymers, composites, wood and metals — scope for supplier networks and product diversification.
  • Untapped potential: Domestic market ≈ US$2.5 billion (equipment ≈ US$0.5 billion); India's equipment exports ≈ US$275 million against global equipment exports of ≈ US$52 billion (2024).
  • Projections: Exports could reach ≈ US$8.1 billion by 2036, generating ≈ 54 lakh additional direct and indirect jobs.
  • Demand drivers: LA Olympics 2028, CWG 2030 (Ahmedabad), Brisbane Olympics 2032 and India's planned bid for the 2036 Olympics.

Other Government Initiatives in Convergence

  • BHAVYA (Bharat Audyogik Vikas Yojna): 100 plug-and-play industrial parks; ₹33,660 crore; ready-built sheds, testing facilities and warehousing.
  • NICDC: Industrial corridor programme covering 20 industrial smart cities across 13 States (4 completed as of September 2026).
  • Anusandhan National Research Foundation (ANRF): Promotes academia–industry–research collaboration for advanced materials and manufacturing technologies.
  • Startup India: Over 2.23 lakh recognised start-ups and 23.36 lakh direct jobs (as of 31 March 2026).
  • Export Promotion Mission: Outlay of ₹25,060 crore (FY 2025–26 to FY 2030–31); components Niryat Protsahan and Niryat Disha.
  • PLI Schemes: Cover 14 sectors; as of June 2026 attracted ₹2.6 lakh crore investment, ₹23.8 lakh crore production, over ₹15.5 lakh crore exports and 14.6 lakh jobs (sports goods are not a separate PLI sector).

Background: Khelo India and Khelo Bharat Niti 2025

  • Khelo India (2017): Brought the Rajiv Gandhi Khel Abhiyan, Urban Sports Infrastructure Scheme and National Sports Talent Search Scheme under one framework.
  • Five pillars: Talent identification, capacity building, sports science and technology, competitions and leagues, and sports infrastructure.
  • Progress (July 2026): 349 infrastructure projects approved (₹3,176 crore), 1,067 Khelo India Centres, 267 supported academies and 2,745 Khelo India Athletes.
  • Khelo Bharat Niti 2025: Recognises sport as a driver of economic growth, entrepreneurship and investment; emphasises 'Sport for Nation-Building', 'Grassroots to Elite' and 'Sport for All' (including women, marginalised groups, tribal communities and persons with disabilities), aligned with Viksit Bharat@2047.

Constitutional and Institutional Context

  • 'Sports and entertainments' is a State List (Entry 33) subject; the Union Government promotes sports largely through central sector and centrally sponsored schemes, incentives and policy frameworks.
  • Sports governance is guided by the National Sports Policy, 2001, the National Sports Development Code, 2011 and now Khelo Bharat Niti 2025.
  • Industrial incentives involve DPIIT (industrial policy,Start-up India), MSDE (skilling), Ministry of Commerce (Export Promotion Mission) and Ministry of Youth Affairs and Sports (nodal).

Significance

  • Make in India and Atmanirbhar Bharat: Reduces import dependence in equipment and high-value gear.
  • MSME and employment: Nearly 90% MSME-led production means incentives cascade to household and micro units, especially in Punjab and western UP.
  • Export diversification: Moves India up the value chain from low-value accessories to certified, branded equipment.
  • Sports economy linkage: Converts sporting demand (Khelo India, mega events) into industrial demand — a 'sports-industrial complex' model.
  • Skill and R&D spillovers: Centres of Excellence and ANRF convergence build materials and design capability applicable to other manufacturing sectors.

Challenges and Way Forward

  • Effective implementation and timely land/infrastructure availability in SGMZs.
  • Strengthening industry–academia linkages and quality/testing standards.
  • Export diversification beyond the UK–US–Australia triad.
  • Ensuring MSME credit access and compliance with international certification norms.
  • Sustained branding to shift global sourcing towards Indian manufacturers.

Conclusion

The scheme builds on India's established manufacturing strengths to expand its global market presence. Its long-term impact will depend on implementation efficiency, skill development, R&D linkages and export diversification — helping India emerge as a competitive sports goods manufacturing hub contributing to Make in India and Viksit Bharat@2047.