Syllabus: GS3/ Economy
Context
- KPMG in India has set up a Sports Technology Hub in Bengaluru to encourage innovation through technology and unleash the economic potential of the sports industry.
Sports Industry of India
- India’s sports industry is estimated at $21 billion, with projections of reaching $40 billion by 2030.
- The country’s sports industry is currently growing at 12-14 per cent annually, nearly twice the pace of overall economic growth.
- The sports technology segment is estimated at $1.2 billion, creating opportunities in AI-based performance analytics, smart stadiums, digital ticketing and fan engagement.
- Cricket dominance: Cricket accounts for nearly 80% of India’s sports economy, indicating the concentration of commercial investment in one sport.
- Manufacturing clusters: Meerut and Jalandhar are important centres for domestic sports goods manufacturing.
Growth Drivers of India’s Sports Industry
- Professional sports leagues: Expansion of the Indian Premier League (IPL), Pro Kabaddi League, Indian Super League and Premier Badminton League has increased commercial investment and audience engagement.
- Digital transformation: AI, computer vision, wearable devices and advanced analytics are transforming athlete training, performance assessment and sports management.
- Sports infrastructure: Development of stadiums, training centres and sports academies is expanding the sector’s infrastructure base.
- International sporting ambitions: The 2030 Commonwealth Games in Ahmedabad and India’s proposed ambition to host the 2036 Olympic Games will create demand for sports infrastructure, services and technology.
Challenges in India’s Sports Ecosystem
- Sports participation remains uneven across rural and urban areas, income groups, genders and social categories.
- Sports facilities remain unevenly distributed, particularly between metropolitan cities and rural or remote regions.
- Limited access to playgrounds, trained coaches and organised competitions restricts participation at the grassroots level.
- Governance Deficiencies: Several National Sports Federations (NSFs) face challenges relating to professional management, institutional capacity and transparency.
- Sports investment remains concentrated in commercially attractive disciplines, particularly cricket. Grassroots sports, women’s sports, para-sports and less-commercial disciplines face funding gaps.
- Sports Professionals: Shortages of qualified coaches, sports scientists, physiotherapists, nutritionists and sports administrators affect athlete development.
- Domestic manufacturers face challenges relating to product quality, testing facilities, research and development and international certification.
Initiatives to Promote Sports in India
- Khelo Bharat Niti 2025 (National Sports Policy 2025): It replaces the National Sports Policy, 2001 and aims to establish an inclusive, performance-driven and globally competitive sports ecosystem.
- The National Sports Governance Act, 2025, aims to improve transparency, accountability, and ethical governance in sports organisations. It provides for;
- Establishment of a National Sports Board to oversee recognition and governance standards of national sports bodies.
- National Sports Tribunal for effective resolution of sports disputes.
- Khelo India Scheme: Launched in 2016–17 to promote mass participation, identify sporting talent and improve sports infrastructure.
- Khelo India Rising Talent Identification (KIRTI) targets children in the 9–18 years age group. It uses Talent Assessment Centres, standardised assessment protocols, AI and data analytics to identify sporting talent.
- Sports Authority of India (SAI): Established in 1984 under the Ministry of Youth Affairs and Sports. It supports athlete training, coaching, infrastructure development and sports promotion.
- Sports Goods Manufacturing Initiative: Union Budget 2026–27 allocated ₹500 crore to strengthen domestic sports goods manufacturing.
- National Sports Development Fund (NSDF): Established in 1998 to promote sports development through contributions from government, corporate entities and individuals.
Way Ahaed
- Develop district-level sports facilities and improve access to existing school, college and community infrastructure.
- Encourage CSR, private investment, sponsorships and public-private partnerships, particularly in grassroots, women’s and para-sports.
- Outcome-based sports development: Shift from measuring infrastructure created and funds allocated towards participation rates, athlete progression, facility utilisation and international performance.
Source: TH
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