Union Cabinet Greenlights Khelo India Sports Goods Manufacturing Initiative
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 has a total budget of ₹1,856.67 crore for the years 2026 to 2033-34. This initiative aims to boost investment, manufacturing, innovation, and exports, thereby enhancing India's standing in the global sports goods market, as stated in a Cabinet press release.
Strengthening India's Manufacturing Base
Introduced in the Union Budget for 2026-27, this scheme is designed to fortify India's sports goods manufacturing sector by providing targeted support for investment, technology adoption, research, innovation, skill development, quality certification, and market expansion. The initiative aims to cultivate a competitive sports goods industry and integrate India into global supply chains. It aligns with the Khelo Bharat Niti 2025, Make in India, and Atmanirbhar Bharat initiatives, with expectations to attract investments, create jobs, enhance domestic manufacturing capabilities, and improve the global competitiveness of Indian sports goods.
Establishment of Sports Goods Manufacturing Zones
The scheme plans to create dedicated Sports Goods Manufacturing Zones (SGMZs) to encourage cluster-based manufacturing and establish integrated industrial ecosystems. These zones will facilitate the co-location of manufacturers, suppliers, testing facilities, design and prototyping centers, and ancillary businesses. Development will occur through collaboration with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks, promoting efficient manufacturing, stronger industry connections, and improved competitiveness throughout the sports goods value chain.
Investment and Growth Strategies
A primary goal of the scheme is to attract fresh investments and bolster domestic manufacturing capabilities in the sports goods sector. The Anchor Investment Support component will motivate leading domestic and international manufacturers, brands, and retail chains to set up production facilities within designated SGMZs, fostering robust supplier and ancillary ecosystems. Additionally, the Turnover Linked Support component will incentivize increased production, capacity expansion, and sustained growth in manufacturing. Together, these initiatives, supported by a combined budget of ₹1,130 crore, aim to enhance domestic manufacturing, reduce reliance on imports, increase domestic value addition, stimulate significant private investment, create job opportunities across the value chain, and boost India's competitiveness in global markets.
Support for MSMEs and Quality Standards
Acknowledging the crucial role of micro, small, and medium enterprises (MSMEs) in the sports goods sector, the scheme emphasizes enhancing existing manufacturing clusters and aiding the growth of smaller enterprises. Support will be provided for upgrading current sports goods manufacturing clusters, including the establishment of shared facilities and infrastructure.
Research, Innovation, and Skill Development
The scheme prioritizes enhancing research, design, and innovation within the sports goods sector. It will support the creation of Centres of Excellence in top educational and research institutions to advance research in sports equipment, material sciences, protective gear, and cutting-edge manufacturing technologies. Research and development activities will be promoted through collaboration with the Anusandhan National Research Foundation. Additionally, dedicated support for start-ups, in line with the Startup India initiative, will encourage innovation and facilitate the development, testing, validation, and commercialization of new technologies, processes, and products within the sports goods manufacturing ecosystem.
Global Market Expansion and Future Vision
The scheme aims to broaden India's footprint in international sports goods markets through targeted branding, outreach, and market development initiatives. By leveraging the Export Promotion Mission, these efforts will enhance the visibility of Indian sports goods, improve market access, and facilitate greater penetration into global markets. By promoting the production of high-quality and internationally certified sports goods, the scheme will address 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. The scheme is anticipated to position India as a competitive hub for the design, development, and manufacturing of sports goods, creating 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.