THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 28, 2026

The Union Cabinet on Wednesday approved a Rs 1,856.67-crore scheme to develop a globally competitive sports goods manufacturing ecosystem in India, with a focus on attracting investments, boosting domestic production, promoting innovation and expanding exports.

The Khelo India Sports Goods Manufacturing Scheme, approved at a Cabinet meeting chaired by Prime Minister Narendra Modi, will be implemented over the period from 2026 to 2033-34.

Announced in the Union Budget 2026-27, the scheme seeks to strengthen India's position in the global sports goods industry by providing targeted support for manufacturing infrastructure, technology adoption, research and development, skill development, quality certification and market expansion.

Aligned with the objectives of Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat, the initiative is expected to attract private investment, generate employment, reduce import dependence and enhance domestic value addition in the sports goods sector.

A key component of the scheme is the development of dedicated Sports Goods Manufacturing Zones, which will bring manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises together to create integrated industrial clusters.

These zones will be developed through convergence with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks, with the aim of improving operational efficiencies, strengthening supply chains and facilitating large-scale manufacturing.

To attract major domestic and global manufacturers, brands and retail chains, the scheme provides for Anchor Investment Support and Turnover Linked Support, backed by a combined outlay of Rs 1,130 crore.

The two components are designed to encourage the establishment of manufacturing facilities, expand production capacities and develop a robust network of suppliers and ancillary industries. The government expects the interventions to catalyse private investment, create jobs across the value chain and improve the competitiveness of Indian products in international markets.

The scheme also places emphasis on strengthening micro, small and medium enterprises (MSMEs), which play a significant role in the sports goods manufacturing sector. Assistance will be extended to upgrade existing manufacturing clusters and develop common facilities and shared infrastructure.

To improve product quality and facilitate access to overseas markets, the government has earmarked Rs 105 crore for supporting manufacturers in obtaining and renewing certifications from international sports federations.

The initiative is expected to help Indian manufacturers meet globally accepted quality and performance standards, enhance buyer confidence and improve the acceptance of domestically manufactured sports goods in international markets.

Research, design and technological innovation will be another major focus area. The scheme envisages setting up Centres of Excellence at premier educational and research institutions to advance work in sports equipment, material sciences, protective gear and advanced manufacturing technologies.

Research and development activities will also be promoted through convergence with the Anusandhan National Research Foundation. Dedicated support for start-ups, aligned with the Startup India initiative, will encourage the development, testing, validation and commercialisation of new products, technologies and manufacturing processes.

The government will also promote industry-oriented skill development in collaboration with the Ministry of Skill Development and Entrepreneurship and relevant industry stakeholders to address the sector's evolving workforce requirements.

On the export front, branding, outreach and market development initiatives will be pursued by leveraging the Export Promotion Mission to improve the visibility of Indian sports goods, strengthen market access and expand their footprint in global markets.

The scheme is also expected to complement the country's broader sporting ambitions by ensuring greater availability of high-quality, internationally certified equipment for athletes and sports development programmes under initiatives such as Khelo India and Fit India.