New Delhi, October 29, 2026: The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of ₹1,856.67 crore, launching a targeted initiative to strengthen India's sports equipment manufacturing industry.
According to the Ministry of Youth Affairs and Sports, the scheme will operate from financial year 2026–27 to 2033–34. It aims to encourage investment, expand production, promote innovation and improve the international competitiveness of Indian-made sports goods.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Union Cabinet approves the Khelo India Sports Goods Manufacturing Scheme.
Location: New Delhi, India, with proposed manufacturing support across eligible Indian industrial clusters and zones.
Authority/Organisation: Union Cabinet and Ministry of Youth Affairs and Sports.
Action Taken: Government approves a ₹1,856.67 crore programme covering investment incentives, manufacturing infrastructure, certification, research and skills development.
Impact: The scheme aims to strengthen domestic sports goods production, improve international competitiveness and create opportunities for investment, employment and exports.
The programme proposes dedicated Sports Goods Manufacturing Zones that would bring manufacturers, component suppliers, testing facilities, design centres and other supporting businesses together. These integrated manufacturing clusters are intended to improve coordination across the supply chain and make production more efficient.
The scheme includes a combined allocation of ₹1,130 crore for anchor investment support and turnover-linked support. Under the anchor investment component, eligible investors committing at least ₹100 crore may receive capital expenditure support of 20%, subject to the scheme's conditions.
The turnover-linked component is designed to encourage eligible manufacturers to expand production. Businesses investing at least ₹10 crore may qualify for incentives of up to 15%, subject to the applicable criteria.
Editorial Analysis
Why This Matters
Support for Indian manufacturers: Investment and production incentives could help eligible businesses expand capacity and improve their ability to compete in domestic and international markets. Opportunities for MSMEs: Support for existing manufacturing clusters and shared facilities may help smaller businesses access infrastructure and technical resources that would otherwise be expensive to develop individually. Improved product quality: International certification assistance could help manufacturers demonstrate compliance with recognised performance and quality standards. Research and innovation: Proposed Centres of Excellence and start-up grants may encourage the development of new materials, safer protective equipment and improved manufacturing processes. Employment and skills: Expansion of manufacturing can create opportunities across production, design, testing, logistics and related supplier industries, although the number of jobs ultimately created will depend on implementation. Export potential: Branding and market-development initiatives may help Indian businesses reach overseas customers and strengthen India's presence in the international sports goods market.
Another ₹105 crore has been allocated to support international certification. Assistance is intended to cover 70% of first-time certification costs and 50% of renewal costs for eligible manufacturers seeking certification from international sports federations.
The scheme also proposes assistance for upgrading existing manufacturing clusters, developing common facilities, supporting research and establishing Centres of Excellence. These centres are expected to focus on sports equipment, material science, protective gear and advanced manufacturing technologies.
Eligible start-ups registered with the Department for Promotion of Industry and Internal Trade may receive grants of up to ₹20 lakh under the scheme's start-up support component, subject to its rules.
India's established sports goods manufacturing centres include Jalandhar in Punjab and Meerut in Uttar Pradesh. The government has highlighted the role of micro, small and medium enterprises in the industry, noting that small and micro enterprises account for a substantial share of production.
The scheme also includes branding, outreach and export-promotion measures intended to help Indian manufacturers reach overseas buyers and meet international quality requirements.
The approval establishes the programme's financial framework and objectives. Actual investment, manufacturing expansion, job creation and export growth will depend on implementation, eligible participation and market demand.
