Centre approves ₹1,856 crore Khelo India Sports Goods manufacturing scheme

The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme with a total outlay of ₹1,856.67 crore for the financial years 2026–27 to 2033–34, aiming to strengthen domestic production, encourage innovation and expand India’s presence in global sports goods markets.

Approved on October 28, the scheme will support investment, manufacturing capacity, research and development, workforce training, international quality certification and export promotion. It was announced in the Union Budget 2026–27.

₹1,130 crore for investment and production

The government has allocated a combined ₹1,130 crore to two components designed to attract investment and increase manufacturing output.

The Anchor Investment Support component will provide capital expenditure support of 20% to anchor investors investing at least ₹100 crore in designated Sports Goods Manufacturing Zones. The Turnover Linked Support component will offer incentives of up to 15% to eligible manufacturers investing ₹10 crore or more.

The scheme also envisages integrated Sports Goods Manufacturing Zones that bring manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises together. These zones will be developed in coordination with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks.

MSMEs and existing manufacturing clusters

The scheme places emphasis on upgrading existing sports goods manufacturing clusters and improving shared infrastructure, including common facilities. The support is intended to help smaller enterprises strengthen production capabilities and improve operational efficiency.

India’s established manufacturing centres include Jalandhar in Punjab and Meerut in Uttar Pradesh. According to the Press Information Bureau, small and micro enterprises account for nearly 90% of sports goods production, making the sector an important source of local enterprise and employment.

₹105 crore for international certification

An allocation of ₹105 crore will support manufacturers in obtaining and renewing certifications from International Sports Federations. The scheme also proposes Centres of Excellence at leading educational and research institutions to advance work in sports equipment, material sciences, protective gear and advanced manufacturing technologies.

Start-ups will receive dedicated support to develop, test and commercialise new products and processes. Skill development initiatives will be implemented with the Ministry of Skill Development and Entrepreneurship and relevant industry stakeholders.

Expanding India’s global market presence

The scheme includes branding, outreach and market development initiatives to help Indian sports goods reach international buyers. The government expects the measures to increase domestic value addition, reduce import dependence, attract private investment and create employment across the manufacturing value chain.

The initiative also aligns with India’s wider sporting ambitions, as the country prepares for major events in the coming decade, including the 2030 Commonwealth Games in Ahmedabad and the Brisbane 2032 Olympic Games. The government has identified sports goods manufacturing as an opportunity to connect sporting growth with industrial development and exports.