Khelo India Sports Goods Manufacturing Scheme: Cabinet Approves ₹1,856.67 Crore Outlay

The Cabinet Committee of the Union Government took a decision on the implementation of the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026, at a total cost of ₹1,856.67 crore for FY 2026-27 to FY 2033-34. This scheme has been launched by the Government of India in the Union Budget 2026-27 in order to boost the domestic manufacturing of sports goods in the country.

About Khelo India Sports Goods Manufacturing Scheme

The plan aims to reinforce the entire sports goods manufacturing value chain which includes product design and research, production, certification, and international marketing.

Name of the Scheme: Khelo India Sports Goods Manufacturing Scheme
Date of approval: 28 October 2026
Total outlay: ₹1,856.67 crore
Period of implementation: FY 2026–27 to FY 2033–34
Separate from: Union Budget 2026–27
Main focus: Investment, manufacturing, innovation, skills, quality, and exports
Broad infrastructure component: Sports Goods Manufacturing Zones (SGMZs)
Investment and production assistance: ₹1,130 crore in total
International accreditation support: ₹105 crore
Wider policy context: Khelo Bharat Niti 2025, Make in India, and Atmanirbhar Bharat

Objectives of the Scheme

This scheme aims to make the Indian sports goods industry competitive by meeting various needs of infrastructure, technology, investment and access to markets.

The important objectives of this scheme are,

Investment from the domestic and foreign sources in sports goods manufacturing.
Increase in manufacturing capacity and domestic value addition.
Reduction in dependency on imported sports goods.
Building up manufacturing clusters and MSMEs.
Promotion of research, designing, materials science and manufacturing technologies.
Improvements in access to international sports federation approvals.
Creation of skill development for the industry.
Higher exports of Indian sports goods.

Key Elements of the Khelo India Sports Goods Manufacturing Scheme

1. Sports Goods Manufacturing Zones (SGMZs)

This scheme contains exclusive Sports Goods Manufacturing Zones that combine all phases of production at the same industrial cluster. These zones will consist of manufacturers, suppliers, design and prototyping facilities, testing laboratories, and ancillary businesses.

2. Support for Manufacturing Based on Investment and Turnover

In the scheme, a total of ₹1,130 crore is allocated for two components aimed at improving production capabilities and attracting investments.

Anchor Investment Support: A provision of 20% towards the investment made in the designated manufacturing clusters.
Turnover Based Support: Supports manufacturers with financial rewards of up to 15% for making investments of ₹10 crore or more.

3. Support for MSMEs and Existing Manufacturing Clusters

Micro, small and medium enterprises play a crucial role in the manufacture of sports goods. Therefore, the scheme also provides for upgrading the existing manufacturing clusters by means of shared infrastructure and facilities.

4. International Quality Certification

The scheme allocates ₹105 crore to help the manufacturers to renew their registration with International Sports Federations.

The support structure includes,

First-time certification: 70% of the cost of registration
Renewal of the certification: 50% of the cost of renewal

5. Research, Development and Innovations

The objective of the program is to bring about improvement in the design, quality and performance of Indian sports goods through innovations and research.

6. Skill Development and Employment

Skill development in line with the industry is included in the scheme and would be done in collaboration with the Ministry of Skill Development and Entrepreneurship.

7. Export Promotion and Market Development

It will assist in branding, marketing and market development in order to increase the international market share of Indian sports goods by making use of the Export Promotion Mission.
The government’s explanatory notes include an India Sports Expo and Brand India campaign among the proposed initiatives. These are expected to help manufacturers in reaching out to foreign buyers and thus improving their chances of exporting Indian sports goods.

Indian Manufacturing of Sports Goods: Present Situation

In India, there are certain clusters that manufacture sports goods, including those located in Jalandhar (Punjab) and Meerut (Uttar Pradesh). Such clusters provide not only local manufacturing but also export products. The manufacturing sector comprises a great number of micro and small businesses.

As is seen from the background information provided by the government, micro and small businesses constitute about 90% of total production. Indian manufacturers manufacture cricketing goods, protective equipment, balls, inflatables, and gym & athletic training equipment. The sports manufacturing sector uses capacities in rubber, polymer materials, composite materials, wood and metal goods.