Khelo India Sports Goods Manufacturing Scheme

Syllabus: GS3/ Economy

Context

• The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme.

About Khelo India Sports Goods Manufacturing Scheme

• Aim: To promote investment, manufacturing, innovation and exports, and strengthen India’s position in the global sports goods sector.
• Time Period: 2026 to 2033-34.
• The scheme was announced in the Union Budget 2026-27 and the Scheme seeks to strengthen India’s sports goods manufacturing.

Global Market Opportunity in Sports Sector

• The global sports goods market, encompassing sports apparel, footwear, equipment, and accessories, was valued at approximately $700 billion in 2024 and is projected to cross $1 trillion by 2036. 
• Within this ecosystem, the sports equipment segment alone accounts for approximately $140 billion, with global demand expected to reach around $283 billion by 2036. 

India’s Position in Sports Equipment Manufacturing

• India’s domestic sports goods market is estimated at approximately $2.5 billion, with sports equipment accounting for nearly $0.5 billion, indicating substantial scope for expansion in both domestic production and exports.

• India currently exports approximately $275 million worth of sports equipment annually, representing around 0.5% of the global export market. 
• Manufacturing activity is concentrated in established clusters such as Jalandhar (Punjab) and Meerut (Uttar Pradesh), supported by a network of exporters, domestic manufacturing units, and thousands of micro enterprises.
• The sector is overwhelmingly MSME-driven, with nearly 90% of production undertaken by small and micro enterprises.
• Products with an international presence: India manufactures cricket bats, protective gear, inflatable balls, and gym and athletic training equipment.
  • The United Kingdom, United States and Australia together receive over half of India’s sports equipment exports.
• Significant long-term potential: India’s sports equipment exports could reach approximately US$8.1 billion by 2036, potentially generating around 54 lakh additional direct and indirect jobs.
• A decade of major events: the Los Angeles Olympics 2028, the Commonwealth Games 2030 in Ahmedabad, the Brisbane Olympics 2032 and India’s planned bid for the 2036 Olympic Games create a decade of demand for sports equipment.

Key Challenges Affecting Export Competitiveness

• High customs duties on critical raw materials such as carbon fibre, EVA foam, and polyurethane materials.
• High certification costs required to meet international sporting standards.
• Logistics inefficiencies and higher input costs.
• Limited access to advanced manufacturing technologies.
• Weak linkages with global sports brands and procurement ecosystems.
• Limited global visibility and branding of Indian sports equipment.

Government Initiatives

• BHAVYA: The Bharat Audyogik Vikas Yojna provides for 100 plug-and-play industrial parks.
  • Facilities such as ready-built factory sheds, testing laboratories and warehousing provide the infrastructure needed by manufacturers. 
• National Industrial Corridor Development Corporation Limited (NICDC): NICDC helps develop industrial cities with land, roads, power, water and transport links for manufacturers.
  • Its industrial corridor programme covers 20 industrial smart cities across 13 States, with four completed as of September 2026. 
• Research and Innovation: Anusandhan National Research Foundation (ANRF) supports research and collaboration between educational institutions, research organisations and industry. 
• Khelo India and Fit India: Khelo India supports participation, talent development, training and sports infrastructure, while Fit India promotes fitness and an active lifestyle. 

Policy Recommendations to Boost Sports Equipment Exports

• Cost Competitiveness: Rationalise import duties on critical raw materials such as carbon fibre, EVA foam, and polyurethane to reduce input costs.
• Strengthening MSME Ecosystem: Expand targeted financial support, credit access, and technology upgradation schemes for MSMEs.
• Cluster-Based Manufacturing Development: Develop new port-proximate greenfield clusters to reduce logistics costs and improve export efficiency.
• Quality Standards: Set up world-class testing and certification facilities to meet international standards.
• Establish dedicated sports technology innovation hubs in collaboration with academia and industry.

Conclusion

• India needs a holistic ecosystem approach combining cost competitiveness, quality enhancement, and global integration is essential.
• With sustained policy push, it can transition from a low-share exporter to a global leader in sports equipment manufacturing.

Source: PIB