Game Changer: Cabinet Greenlights Rs 1,856 Crore for Sports Goods Manufacturing
India launches the Khelo India Sports Goods Manufacturing Scheme to boost exports, innovation, and domestic production with a Rs 1,856 crore outlay.
In a massive push to transform India into a global powerhouse for athletic equipment, the Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the Khelo India Sports Goods Manufacturing Scheme. With a substantial financial outlay of Rs 1,856.67 crore spanning from 2026 to 2033-34, the government aims to overhaul the domestic production landscape and slash reliance on imports.
First introduced in the Union Budget 2026-27, this ambitious initiative is designed to foster a culture of innovation, attract heavy investment, and propel Indian-made sports gear into the international market. The scheme aligns with the broader visions of Make in India, Atmanirbhar Bharat, and the Khelo Bharat Niti 2025.
Building Industrial Powerhouses: The SGMZs
At the heart of this scheme is the creation of dedicated Sports Goods Manufacturing Zones (SGMZs). Rather than scattered production, the government is betting on a cluster-based approach to create integrated industrial ecosystems. These zones will act as hubs where manufacturers, suppliers, design centers, and prototyping facilities coexist.
To ensure rapid development, these zones will leverage existing infrastructure through convergence with the BHAVYA Scheme and NICDC Industrial Parks. This strategic co-location is expected to streamline supply chains, enhance operational efficiency, and make the entire value chain more competitive.
Financial Incentives to Drive Growth
To ensure the industry doesn't just grow but leaps, the government has earmarked Rs 1,130 crore for two primary financial drivers:
- Anchor Investment Support: This component is designed to lure top-tier global brands, retail chains, and leading domestic manufacturers to set up shop within the SGMZs, thereby creating a ripple effect that benefits smaller ancillary suppliers.
- Turnover Linked Support: To encourage scaling, this incentive will reward companies that increase their production capacity and maintain sustained manufacturing growth.
Empowering MSMEs and Global Quality Standards
The government recognizes that Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the sports goods sector. The scheme provides targeted assistance for the upgradation of existing manufacturing clusters, focusing on shared infrastructure and common facilities to help smaller players compete.
Furthermore, to break into elite global markets, quality is non-negotiable. The Cabinet has allocated Rs 105 crore specifically to help manufacturers obtain and renew certifications from International Sports Federations. By meeting these rigorous global standards, Indian products will gain the credibility needed to compete on the world stage.
Innovation and the Future of Gear
Beyond just assembly and manufacturing, the scheme places a heavy premium on the "brains" behind the products. There is a dedicated focus on research, design, and innovation to ensure India isn't just making gear, but inventing the next generation of sports technology. This includes providing support for the establishment of Centres of Excellence within premier educational and research institutions.
Through these combined efforts—investment, infrastructure, certification, and innovation—India seeks to create a robust domestic manufacturing base that generates widespread employment and secures a dominant position in the global sports supply chain.