India’s Sports Economy Hits ₹1.99 Lakh Crore in FY26

India’s sports economy is estimated to have reached ₹1.99 lakh crore, or approximately $21 billion, in FY2025–26, growing at an annual rate of 12–14%, according to a new report by KPMG India. The sector now extends well beyond professional competitions, encompassing broadcasting, sponsorships, sports infrastructure, manufacturing, technology, tourism and athlete development.

However, the industry’s rapid expansion has not translated into balanced growth across all sports. Cricket continues to dominate commercial revenues, while grassroots participation, women’s sports, para-sports and community programmes face funding constraints. KPMG’s report, Strengthening India’s Sports Ecosystem: Status Assessment and Strategic Improvement Plan, argues that India must improve governance, infrastructure utilisation and athlete development if it wants to convert economic growth into broader sporting success.

Key Takeaways

• Market size: India’s sports economy is estimated at ₹1.99 lakh crore ($21 billion) in FY26.
• Growth rate: The industry is expanding at an estimated annual rate of 12–14%.
• Cricket dominance: Cricket accounts for approximately 75–80% of the sports economy, according to the report.
• Government spending: The Ministry of Youth Affairs and Sports received ₹4,479.88 crore for FY2026–27.
• Commercial opportunities: Sponsorships, professional leagues, sports technology, manufacturing and sports tourism offer opportunities for expansion.
• Major challenges: Funding gaps, uneven infrastructure access, governance weaknesses and limited measurement of sporting outcomes remain concerns.
• KPMG’s recommendation: Shift from measuring spending and facilities created to tracking participation, athlete progression and long-term economic impact.

How Big Is India’s Sports Economy?

The ₹1.99 lakh crore estimate reflects the growing economic importance of sports in India. The industry supports activities across media, advertising, event management, retail, equipment manufacturing, coaching, fitness and infrastructure.

The growth of professional leagues has helped attract commercial investment, while digital platforms have created additional opportunities for fan engagement and sports-related content. Government programmes and private academies are also expanding the pathways available to aspiring athletes.

KPMG estimates that the industry is growing by 12–14% annually. Sustaining that pace, however, will depend on whether investment reaches beyond established commercial properties and supports a broader range of sporting activities.

The market-size estimate should also be interpreted in context. A sports economy includes more than league revenues or sponsorship income, and different reports may use different definitions and measurement methods. The ₹1.99 lakh crore figure is KPMG’s estimate for FY26, rather than a measure of the revenue earned by a single group of sports businesses.

Cricket Remains the Biggest Commercial Driver

Cricket continues to account for the largest share of India’s sports business, supported by television and digital rights, sponsorships, ticket sales, advertising and franchise valuations.

According to KPMG’s report overview, cricket represents approximately 75–80% of the sports economy. The Indian Premier League (IPL) remains one of the country’s most valuable sports properties, with an estimated enterprise value of ₹1.97 lakh crore, or about $20.6 billion, cited in the report.

The commercial appeal of cricket gives brands a large audience and provides broadcasters and streaming platforms with premium sports content. Its established fan base also makes cricket an attractive market for sponsors and advertisers.

However, this concentration creates a structural challenge. Other sports may struggle to attract comparable media deals, sponsorship commitments and investment, even when they have strong regional followings or promising athletes.

KPMG points to opportunities in football, kabaddi, hockey, chess and women’s sports. Expanding the commercial base across these areas could diversify industry revenues while creating more professional opportunities for athletes, coaches and sports administrators.

Sponsorships and Professional Leagues Create New Opportunities

Sports sponsorship and marketing crossed $1.95 billion, equivalent to approximately ₹18,525 crore, in 2024, according to the figures cited by KPMG. Cricket remained the dominant contributor, but the wider sports ecosystem offers room for new commercial models.

Professional leagues can generate revenue through sponsorships, media rights, merchandise, ticket sales and franchise partnerships. Digital distribution also allows smaller sports to reach audiences beyond traditional television coverage.

For businesses, sports can provide a way to build brand awareness and connect with consumers through teams, athletes and live events. For the industry, sponsorship revenue can help fund training, facilities, competitions and athlete support.

The challenge is ensuring that commercial growth benefits more than a small group of high-profile teams and competitions. Multi-year sponsorship agreements, investment in emerging leagues and better links between professional sport and grassroots programmes could help distribute opportunities more widely.

Government Funding Rises, but Outcomes Matter

The Union government’s sports allocation has increased over the past decade. For FY2026–27, the Ministry of Youth Affairs and Sports received ₹4,479.88 crore, according to government budget information and the KPMG report.

Programmes such as Khelo India aim to expand participation, improve facilities and strengthen pathways for identifying and developing talent. Private academies, schools, universities and commercial leagues also contribute to the country’s sports ecosystem.

Yet higher budgets alone do not guarantee better results. A facility may be constructed but remain underused, or a training programme may enrol participants without providing a clear route to competitive sport.

KPMG recommends a stronger focus on outcome-based measurement. This includes tracking how many people participate regularly, whether athletes progress to higher competition levels, how effectively facilities are used and whether investment produces lasting improvements.

The approach could help governments and private investors identify programmes that deliver measurable benefits and redirect resources when results fall short.

Funding Gaps and Uneven Access Remain Major Problems

Despite rising commercial activity, funding remains concentrated in sports with strong audiences and clearer revenue opportunities.

Grassroots programmes, women’s sports, para-sports and community initiatives can face difficulties securing consistent support. Smaller sports organisations may lack the resources to build professional management teams, attract sponsors or provide athletes with comprehensive training services.

These gaps matter because elite performance depends on a broader development system. Athletes need access to qualified coaches, regular competition, sports science, nutrition, rehabilitation and appropriate facilities long before they reach the national or international stage.

KPMG recommends developing a pipeline of investment-ready projects, encouraging multi-year corporate social responsibility commitments and exploring blended-finance models that combine public and private capital.

Such approaches could make it easier for investors to support initiatives that have social and sporting value but may not generate immediate commercial returns.

Sports Infrastructure Needs Better Utilisation

India has invested in sports facilities, but their availability, condition and accessibility vary across locations. A stadium or training centre does not deliver its full value if it is difficult to access, poorly maintained or used only for occasional events.

KPMG recommends creating a national registry of public, educational and private sports facilities. The registry would track factors such as location, condition, accessibility, pricing and utilisation.

Better information could help authorities identify underserved communities, improve access to existing facilities and prioritise refurbishment before building new infrastructure.

It could also help schools, clubs and local organisations coordinate access to training grounds, courts, swimming pools and specialist facilities.

The objective is to increase the amount of useful sporting activity supported by each facility, rather than treating construction spending as the primary measure of progress.

Manufacturing, Technology and Sports Science Offer Growth Potential

India’s sports economy also includes sporting goods manufacturing, performance technology, data analytics, sports medicine and event-related services.

Manufacturing clusters such as Meerut and Jalandhar could benefit from improved testing facilities, quality certification, advanced materials and research and development. These improvements could help smaller producers increase productivity and compete in international markets.

Technology offers another opportunity. Performance tracking, video analysis and data-driven talent identification can help coaches make better decisions. Digital platforms can also improve fan engagement and the commercial reach of leagues.

Meanwhile, expanded access to sports science, nutrition, rehabilitation and mental-wellbeing services could strengthen athlete development and reduce injury risks.

KPMG’s report argues that these capabilities need to be integrated into a coordinated system involving businesses, sports federations, educational institutions and public agencies.

The Bigger Picture

India’s sports economy has grown into a significant commercial sector, supported by professional leagues, government spending, advertising, digital media and rising investment. Its estimated ₹1.99 lakh crore size demonstrates the economic potential of sports beyond competition itself.

The next phase will depend on how effectively the country addresses the weaknesses beneath that growth. Better governance, more balanced funding, stronger athlete pathways and higher infrastructure utilisation could help spread the benefits across more sports and communities. A broader ecosystem could also create opportunities in manufacturing, technology, tourism and employment.

FAQs

1. What is the size of India’s sports economy in FY26?

KPMG estimates that India’s sports economy reached ₹1.99 lakh crore, or approximately $21 billion, in FY2025–26.

2. How fast is India’s sports economy growing?

The KPMG report estimates annual growth of 12–14%. The pace of future growth will depend on investment, commercial expansion and improvements across the sports ecosystem.

3. Why does cricket dominate India’s sports economy?

Cricket benefits from a large fan base, established broadcasting and digital rights, extensive sponsorships and the commercial strength of properties such as the IPL. KPMG estimates that cricket accounts for around 75–80% of the sports economy.

4. How much has the government allocated to sports?

The Ministry of Youth Affairs and Sports received ₹4,479.88 crore in the Union Budget for FY2026–27. The allocation supports government programmes and activities related to sports and youth development.

5. What are the biggest challenges facing India’s sports industry?

Key challenges include uneven funding, cricket’s commercial dominance, gaps in grassroots and women’s sports, infrastructure underutilisation, governance weaknesses and the need for better athlete development and performance measurement.

Looking Ahead

India’s sports economy has the scale and growth momentum to become a larger contributor to employment, investment and commercial activity. The immediate priority is to ensure that public funding and private capital support a wider range of sports, while improving the quality of coaching, facilities and athlete support systems.

KPMG’s recommendations point towards a more measurable and inclusive model of sports development. If policymakers and industry participants can connect investment with participation, athlete progression and infrastructure use, India could build a stronger commercial sports sector while improving its prospects for international sporting success.