India Launches Khelo India Sports Goods Manufacturing Scheme to Boost Local Industry

Khelo India Sports Goods Manufacturing Scheme Approved

The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light to the Khelo India Sports Goods Manufacturing Scheme, which comes with a budget of ₹1,856.67 crore for the period from 2026 to 2033-34. This initiative aims to enhance investment, manufacturing, innovation, and exports, thereby bolstering India's standing in the global sports goods market, as stated in a Cabinet press release.

Introduced in the Union Budget for 2026-27, the scheme is designed to fortify India's sports goods manufacturing sector by providing targeted support for investment, technology integration, research and innovation, skill enhancement, quality certification, and market development. The initiative aims to cultivate a competitive sports goods industry that can effectively integrate into global supply chains.

In line with the Khelo Bharat Niti 2025, Make in India, and Atmanirbhar Bharat initiatives, this scheme is anticipated to draw investments, generate job opportunities, enhance domestic manufacturing capabilities, and improve the global competitiveness of Indian sports goods.

The plan includes the establishment of dedicated Sports Goods Manufacturing Zones (SGMZs) to foster cluster-based manufacturing and create integrated industrial ecosystems. These zones will facilitate the co-location of manufacturers, suppliers, testing facilities, design and prototyping centers, and ancillary businesses. They will be developed in conjunction with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks, promoting efficient manufacturing and stronger industry connections.

These zones are expected to create integrated manufacturing facilities, enhance industry linkages, and boost operational efficiencies. The interventions are projected to attract investments, increase production capacities, and support the development of a robust sports goods manufacturing sector in India.

A significant aspect of the scheme is its focus on attracting new investments and bolstering domestic manufacturing capabilities in the sports goods industry. The Anchor Investment Support component will motivate leading domestic and international manufacturers, brands, and retail chains to set up manufacturing units within designated SGMZs, fostering the growth of a strong supplier and ancillary ecosystem. Additionally, the Turnover Linked Support component will incentivize increased production, capacity expansion, and sustained manufacturing growth.

Together, these initiatives, supported by a total budget of ₹1,130 crore, are expected to enhance domestic manufacturing, reduce reliance on imports, increase domestic value addition, stimulate substantial private investment, create job opportunities throughout the value chain, and improve India's competitiveness in global markets.

Acknowledging the vital role of micro, small, and medium enterprises (MSMEs) in the sports goods sector, the scheme emphasizes the strengthening of existing manufacturing clusters and the support of smaller enterprises.

Assistance will be available for upgrading current sports goods manufacturing clusters, including the development of shared facilities and infrastructure.

The scheme recognizes the significance of adhering to internationally accepted quality and performance standards to boost the competitiveness of Indian sports goods.

Manufacturers will receive support for obtaining and renewing certifications from International Sports Federations, with a budget allocation of ₹105 crore.

These initiatives will enhance product quality, facilitate access to international markets, and build confidence in Indian-made sports goods.

The scheme also places a strong emphasis on advancing research, design, and innovation within the sports goods sector.

Support will be extended for establishing Centres of Excellence in leading educational and research institutions to promote research in sports equipment, material sciences, protective gear, and advanced manufacturing technologies.

Research and development activities will be encouraged through collaboration with the Anusandhan National Research Foundation.

Dedicated support for start-ups, in line with the Startup India initiative, will promote innovation and facilitate the development, testing, validation, and commercialization of new technologies, processes, and products within the sports goods manufacturing ecosystem.

Recognizing the labor-intensive nature of the sports goods sector, the scheme will support skill development initiatives that align with industry needs.

These skill development programs will be implemented in partnership with the Ministry of Skill Development and Entrepreneurship and relevant industry stakeholders to ensure they meet evolving industry demands.

These efforts will help address the increasing need for skilled labor and support the long-term growth of the sports goods manufacturing sector.

The scheme aims to enhance India's presence in international sports goods markets through targeted branding, outreach, and market development initiatives. By leveraging the Export Promotion Mission, these efforts will improve the visibility of Indian sports goods, strengthen market access, and facilitate their greater penetration into international markets.

By promoting the production of high-quality and internationally certified sports goods, the scheme will cater to the evolving needs of India's sports sector and athlete development programs. Enhanced innovation, quality infrastructure, and manufacturing capacity under this initiative will complement programs like Khelo India and Fit India.

Ultimately, the scheme is expected to position India as a globally competitive hub for the design, development, and manufacturing of sports goods. By enhancing manufacturing capabilities, fostering innovation, and expanding global market access, it will create new opportunities for growth, employment, and exports, while supporting India's ambition to become a leading sporting nation and advancing the vision of Atmanirbhar Bharat and Viksit Bharat@2047.