India’s Union Cabinet has approved the ₹1,856.67 crore Khelo India Sports Goods Manufacturing Scheme to strengthen domestic sports-equipment production, attract private investment and help Indian manufacturers compete in international markets. Approved on October 28, 2026, the scheme will run from 2026 through 2033–34 and support manufacturing, research, innovation, workforce training and product certification.
A central part of the initiative is the development of dedicated Sports Goods Manufacturing Zones that bring manufacturers, suppliers, testing facilities and design centres together. The government has earmarked ₹1,130 crore for investment and production-linked support, alongside ₹105 crore for international sports-federation certification. The broader objective is to increase domestic value addition, reduce import dependence and expand exports of Indian-made sports goods.
Key Takeaways
- Total outlay: ₹1,856.67 crore over eight financial years, from 2026 to 2033–34.
- Manufacturing zones: Dedicated industrial clusters will bring manufacturers, suppliers and testing facilities together.
- Investment support: ₹1,130 crore is allocated to anchor investment support and turnover-linked incentives.
- Quality certification: ₹105 crore will support obtaining and renewing certifications from international sports federations.
- MSME support: Existing sports-goods manufacturing clusters will receive assistance to upgrade shared infrastructure and facilities.
- Research and skills: The scheme will support innovation, advanced manufacturing, product development and industry-aligned training.
- Export ambitions: The government aims to strengthen India’s position in global sports-goods supply chains.
What Is the Khelo India Sports Goods Manufacturing Scheme?
The Khelo India Sports Goods Manufacturing Scheme is a government initiative designed to build a stronger domestic industry for sporting equipment and related products. It was announced in the Union Budget 2026–27 and subsequently approved by the Cabinet.
The scheme extends the Khelo India policy framework beyond athlete development and sports infrastructure into the manufacturing ecosystem that supplies sporting equipment.
India needs a manufacturing base capable of producing high-quality sports goods at competitive prices. That requires more than factories: manufacturers also need reliable suppliers, modern production technologies, testing facilities, trained workers and access to international markets.
The scheme is designed to address these requirements through coordinated support for investment, production, research, certification and market development.
According to the official Cabinet announcement, the initiative is aligned with Make in India, Atmanirbhar Bharat and Khelo Bharat Niti 2025.
How the ₹1,856.67 Crore Budget Will Be Used
The approved outlay covers several areas of the sports-goods value chain. Two major financial components are investment and production support, and international certification.
| Component | Allocation or purpose |
|---|---|
| Total scheme outlay | ₹1,856.67 crore |
| Anchor investment and turnover-linked support | ₹1,130 crore combined |
| International sports-federation certification | ₹105 crore |
| Manufacturing zones | Integrated industrial infrastructure and supplier networks |
| MSME cluster upgrades | Shared facilities and manufacturing infrastructure |
| Research and innovation | Centres of Excellence, product development and advanced manufacturing |
| Skill development | Training aligned with industry requirements |
| Market development | Branding, outreach and export-market access |
Source: Press Information Bureau. The table lists specified allocations and programme areas; it does not assign separate amounts where the government announcement does not provide them.
The ₹1,130 crore investment-support component combines incentives intended to attract new manufacturing investment with support linked to business turnover. The structure is designed to encourage companies to establish facilities, expand capacity and increase production.
The ₹105 crore certification allocation addresses another challenge: a product manufactured in India may still need to meet the technical and quality requirements of an international sports federation before it can be used in particular competitive settings or access certain markets.
Dedicated Sports Goods Manufacturing Zones
One of the scheme’s central proposals is the development of Sports Goods Manufacturing Zones, or SGMZs.
These zones are intended to bring different parts of the manufacturing process into a coordinated industrial ecosystem. Manufacturers could operate closer to component suppliers, testing laboratories, design and prototyping centres, and ancillary businesses.
The government plans to develop these zones through convergence with existing industrial infrastructure, including the BHAVYA Scheme and industrial parks associated with the National Industrial Corridor Development Corporation.
The cluster-based approach can offer several potential advantages:
- Shared testing and production facilities may reduce costs for smaller businesses.
- Proximity to suppliers can improve coordination and shorten production timelines.
- Design and prototyping centres can help manufacturers develop new products.
- A concentrated workforce and supplier network can support industrial specialization.
- Shared infrastructure may make it easier for smaller companies to enter the sector.
The actual benefits will depend on where the zones are established, how quickly facilities become operational and whether manufacturers invest in them. The Cabinet approval establishes the policy direction; it does not mean all proposed facilities are already operational.
Support for Domestic Manufacturers and MSMEs
Micro, small and medium enterprises play an important role in many manufacturing supply chains. Smaller producers can supply components, manufacture finished equipment or provide specialized services to larger brands.
However, they may struggle to afford modern machinery, testing infrastructure and other facilities needed to meet international quality requirements.
The scheme proposes assistance to upgrade existing sports-goods manufacturing clusters, including shared infrastructure and common facilities. This could help businesses improve productivity without each company having to build every facility independently.
The investment-support structure is also intended to attract established Indian and international manufacturers, brands and retail chains into designated manufacturing zones. Larger investments could create demand for local suppliers, transport operators, packaging businesses and other service providers.
Whether these benefits reach smaller firms will depend on the scheme’s detailed eligibility conditions, implementation and the distribution of investment across the supply chain.
Research, Innovation and Product Quality
The scheme places particular emphasis on developing the technology and expertise needed to produce more sophisticated sporting equipment.
Support is planned for Centres of Excellence at leading educational and research institutions. These centres are expected to focus on areas such as sports equipment, material science, protective gear and advanced manufacturing technologies.
Research and development activities are also expected to benefit from coordination with the Anusandhan National Research Foundation.
This matters because sports products can require specialized materials and engineering. Equipment manufacturers may need to improve strength, weight, durability, impact resistance or performance while meeting the requirements of particular sports.
The scheme also proposes assistance for certification from international sports federations. With a dedicated allocation of ₹105 crore, the initiative aims to help manufacturers obtain and renew relevant certifications.
Certification does not automatically guarantee export growth, but meeting recognized technical standards can help products qualify for specific uses and improve their credibility among buyers.
Employment and Export Opportunities
Manufacturing growth can create jobs across factories, supplier networks, logistics, product development, testing and maintenance. The government plans to coordinate skills initiatives with the Ministry of Skill Development and Entrepreneurship and relevant industry stakeholders.
Training aligned with industry requirements could help prepare workers for modern production methods and technical roles. Research, design and prototyping activities may also create opportunities for engineers, product designers and materials specialists.
Exports are another major objective. The scheme proposes branding, outreach and market-development initiatives to improve the visibility of Indian sports goods and expand access to overseas buyers.
However, the announcement does not establish a guaranteed number of new jobs, a specific increase in exports or a quantified reduction in imports. These outcomes will depend on implementation, private investment, product competitiveness and international demand.
The Bigger Picture
The Khelo India Sports Goods Manufacturing Scheme represents an effort to connect India’s sporting ambitions with industrial development. A stronger domestic equipment industry could support local demand while creating opportunities for manufacturers to serve international markets.
The initiative’s success will depend on more than the size of its budget. Access to modern machinery, reliable suppliers, technical skills, internationally accepted standards and efficient logistics will influence whether Indian companies can compete with established global producers. The development of manufacturing zones and support for research could help address some of these needs, but measurable results will emerge only as projects and investments move forward.
FAQs
1. What is the Khelo India Sports Goods Manufacturing Scheme?
It is a government initiative approved on October 28, 2026, to strengthen India’s sports-goods manufacturing industry through investment incentives, industrial zones, research, skills, certification and export support.
2. What is the total budget of the scheme?
The Cabinet approved a total outlay of ₹1,856.67 crore for the period from 2026 to 2033–34.
3. How much funding is allocated for investment support?
A combined ₹1,130 crore is allocated to anchor investment support and turnover-linked support. The official announcement identifies the combined allocation for these components.
4. Will small sports-equipment manufacturers benefit?
The scheme includes assistance to upgrade existing manufacturing clusters and shared facilities, which could benefit MSMEs. Actual eligibility and benefits will depend on the detailed implementation guidelines.
5. Will the scheme create jobs and increase sports-goods exports?
The government expects the initiative to attract investment, create employment and expand exports. However, specific job numbers and export targets were not established in the Cabinet announcement.
Looking Ahead
The next important steps will be the detailed implementation guidelines, identification and development of manufacturing zones, and the rollout of investment incentives. Manufacturers and MSMEs will need clear eligibility rules and information about how to access the programme’s support.
Over the longer term, the scheme’s impact will be measured by actual factory investment, domestic value addition, product quality, employment and export performance. If the planned infrastructure and support mechanisms are implemented effectively, the initiative could help India build a more integrated and internationally competitive sports-goods manufacturing industry.
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