India’s Sports Equipment Manufacturing Sector

Syllabus: GS3/ Economy

Context

• NITI Aayog released a report titled “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector”, presenting a comprehensive assessment of India’s manufacturing capabilities, and global market opportunities.

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.

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.

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.
• Establish dedicated sports technology innovation hubs in collaboration with academia and industry.
• Quality Standards: Set up world-class testing and certification facilities to meet international standards.

Concluding remarks

• 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