Cabinet clears Rs.857-crore Khelo India sports goods manufacturing scheme

New Delhi: The Union Cabinet on Wednesday approved the Khelo India Sports Goods Manufacturing Scheme, which aims to strengthen India’s position in the global sports goods sector through initiatives such as the development of dedicated Sports Goods Manufacturing Zones.

The scheme has been approved with a total outlay of ₹1,856.67 crore for the period from 2026 to 2033-34.

Announced in the Union Budget 2026-27, the scheme seeks to strengthen India’s sports goods manufacturing base through research and innovation, skill development, quality certification and market development.

“The scheme will support the development of a globally competitive sports goods industry and strengthen India’s position in global supply chains,” a PIB release stated.

Sports Minister Mansukh Mandaviya said the scheme would empower the country’s youth through new employment opportunities and drive investment.

“India Plays, India Manufactures! Under the leadership of Prime Minister Shri @narendramodi ji, the Union Cabinet today approved the ‘Khelo India Sports Goods Manufacturing Scheme’ with an outlay of ₹1,856.67 crore. The resolution of Budget 2026-27 is now becoming a reality on the ground,” Mandaviya said in a post on X.

“Now, not only Indian athletes, but sports equipment made in India will also elevate the pride of the tricolour across the world. This historic step will empower our Yuva Shakti through new employment opportunities, drive massive investments, and realise the ultimate vision of an Aatmanirbhar and Viksit Bharat,” he added.

The scheme envisages the development of dedicated Sports Goods Manufacturing Zones (SGMZs) to promote cluster-based manufacturing and create integrated industrial ecosystems by bringing together manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises.

“These Zones will be developed through convergence with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks, enabling efficient manufacturing, stronger industry linkages and enhanced competitiveness across the sports goods value chain,” the PIB release stated.

A key focus of the scheme is to attract fresh investment and strengthen domestic manufacturing capacity in the sports goods sector.

The Turnover Linked Support component will incentivise higher production, capacity expansion and sustained manufacturing growth.

These interventions, backed by a combined outlay of ₹1,130 crore, are expected to strengthen domestic manufacturing, reduce import dependence, enhance domestic value addition, catalyse private investment, generate employment across the value chain and improve India’s competitiveness in global markets.

Recognising the role of micro, small and medium enterprises (MSMEs) in the sports goods sector, the scheme envisages assistance to upgrade existing sports goods manufacturing clusters, including through the development of common facilities and shared infrastructure.

Support will also be provided to manufacturers to obtain and renew certifications from international sports federations, with an outlay of ₹105 crore.

Research and innovation

To strengthen research, design and innovation in the sports goods sector, the scheme will support the establishment of Centres of Excellence in premier educational and research institutions. These centres will promote research into sports equipment, material sciences, protective gear and advanced manufacturing technologies.

Research and development activities will also be encouraged through convergence with the Anusandhan National Research Foundation.