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Khelo India Sports Goods Manufacturing Scheme 2026: Benefits & Key Features

INDUSTRIAL DEVELOPMENT • SPORTS ECONOMY

Khelo India Sports Goods Manufacturing Scheme

Building a Globally Competitive Sports Manufacturing Ecosystem

BPSC Preparation UPSC GS Paper III Manufacturing & MSMEs

India's sports sector offers opportunities beyond athletic performance. Sports goods manufacturing can support industrial development, employment, innovation, entrepreneurship and exports. To strengthen this sector, the Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026.

The scheme aims to develop an internationally competitive ecosystem for designing, developing and manufacturing high-quality sports equipment in India. It combines manufacturing infrastructure, investment incentives, research, certification, skill development and export promotion.

Khelo India Sports Goods Manufacturing Scheme

1. KISGM Scheme at a Glance

₹1,856.67 Cr
Total Scheme Outlay
FY 2026–27 to FY 2033–34
₹1,130 Cr
Investment & Production Support
Combined outlay
₹105 Cr
Certification Support
International sports standards
20%
Anchor Investment Support
Capital expenditure support, subject to scheme conditions

2. Background: Why Does India Need This Scheme?

India has an established sports goods manufacturing base supported by skilled workers, entrepreneurial micro and small enterprises, and industrial clusters. Jalandhar in Punjab and Meerut in Uttar Pradesh are important centres of sports goods manufacturing.

🏭 Established Manufacturing Clusters
Jalandhar and Meerut are important centres, with additional manufacturing activities in Ludhiana, Delhi and Mumbai.
👷 MSME Participation
According to the supplied PIB backgrounder, small and micro enterprises account for nearly 90% of production.
🌍 Export Opportunities
Indian manufacturers produce cricket equipment, protective gear, inflatable balls, gym equipment and athletic training products for domestic and international markets.

Selected Industry Figures

Indicator Figure reported by PIB
Global sports equipment market, 2024 Approximately US$140 billion
Projected global market, 2036 Approximately US$283 billion
Estimated Indian sports goods market US$2.5 billion
Indian sports equipment exports, 2024 Approximately US$275 million
Potential Indian sports equipment exports by 2036 Approximately US$8.1 billion

3. Objectives of the Scheme

🏗️
Infrastructure
Develop integrated manufacturing zones and shared facilities.
💰
Investment
Attract domestic and global manufacturers and expand production.
🔬
Research & Innovation
Support new materials, equipment design, testing and start-ups.
🌐
Global Competitiveness
Improve certification, branding, quality and export access.

4. How Will the Scheme Work?

The scheme covers the manufacturing value chain, from industrial infrastructure and investment to research, quality assurance and market development.

SPORTS GOODS MANUFACTURING ECOSYSTEM
↓
1. Manufacturing Zones
Land, industrial infrastructure, suppliers and testing facilities
↓
2. Investment & Production
Anchor investment support and turnover-linked incentives
↓
3. Technology & Quality
Research, prototyping, certification and skilled workers
↓
4. Market Development
Branding, exports and access to international buyers

5. Integrated Sports Goods Manufacturing Zones

The scheme proposes integrated Sports Goods Manufacturing Zones (SGMZs) that bring related industrial activities together. The supplied PIB backgrounder states that there may be four such integrated zones, each covering more than 300 acres.

4
Proposed Zones
300+ Acres
Each Zone

These zones are planned through convergence with the BHAVYA Scheme and NICDC industrial parks. The approach can bring manufacturers, component suppliers, testing facilities, design centres and ancillary enterprises closer together.

Expected Advantages of Manufacturing Zones

  • Better access to shared infrastructure and testing facilities.
  • Stronger linkages between manufacturers and suppliers.
  • Opportunities for design, prototyping and product innovation.
  • Improved production efficiency and industrial coordination.

6. Investment and Production Incentives

A combined outlay of ₹1,130 crore is earmarked for anchor investment support and turnover-linked production support. These interventions are designed to attract investment and encourage manufacturing expansion.

Feature Anchor Investment Support Turnover-Linked Support
Purpose Attract major manufacturers Encourage production growth
Investment threshold At least ₹100 crore Investment of ₹10 crore or more
Support rate 20% capital expenditure support Incentives of up to 15%
Main objective Establish manufacturing facilities Expand manufacturing and output
Conceptual distinction

Capital expenditure support is associated with investment in eligible assets, while turnover-linked incentives are tied to eligible production or sales-related criteria under the scheme. The stated rates are subject to the detailed scheme guidelines.

7. Support for MSMEs and Existing Clusters

Micro, small and medium enterprises are important to India's sports goods manufacturing base. The scheme provides for upgrading existing clusters and developing common facilities and shared infrastructure in collaboration with States through cost-sharing arrangements.

🏭 Common Facilities
Shared infrastructure can help enterprises access facilities that may be difficult to establish individually.
🤝 State Participation
Cost-sharing with States supports the upgrading of existing manufacturing clusters.
📈 Enterprise Growth
Better facilities can support product quality, manufacturing capability and participation in supply chains.

8. International Certification Support

International certification can help sports goods manufacturers demonstrate that their products meet the applicable quality and performance requirements of International Sports Federations.

CERTIFICATION SUPPORT OUTLAY
₹105 Crore
70%
First-time certification costs
50%
Certification renewal costs

This support aims to encourage internationally accepted quality standards and improve access to overseas markets. Certification requirements and eligibility will be governed by the applicable scheme provisions.

9. Research, Centres of Excellence and Start-ups

The scheme seeks to encourage innovation in sports equipment, advanced materials, protective gear and manufacturing technologies. Centres of Excellence at premier educational and research institutions will contribute to research and technology development.

🔬
Centres of Excellence
Research in sports equipment, material science, protective gear and advanced manufacturing.
🚀
Start-up Grants
DPIIT-registered sports start-ups may be eligible for grants of up to ₹20 lakh.

Convergence with the Anusandhan National Research Foundation (ANRF) is intended to encourage collaboration between industry, educational institutions and research organisations. The scheme also aligns its start-up support with the broader Startup India ecosystem.

10. Skill Development and Export Promotion

👷 Industry-Aligned Skills

Training initiatives with the Ministry of Skill Development and Entrepreneurship and industry stakeholders will help meet the evolving skill requirements of sports goods manufacturing.

🌐 India Sports Expo and Brand India Campaign

Branding, outreach, trade promotion and market-development initiatives will aim to improve the visibility of Indian sports goods and help manufacturers reach international buyers.

The scheme will draw on the wider Export Promotion Mission for relevant market-development support. Better product quality, recognised certification and international outreach can help manufacturers compete in global markets.

11. Convergence with National Schemes

The Khelo India Sports Goods Manufacturing Scheme connects manufacturing development with wider initiatives for industrial infrastructure, innovation, exports and sports participation.

Scheme / Initiative Connection with Sports Goods Manufacturing
BHAVYA Industrial parks and plug-and-play infrastructure.
NICDC Industrial parks and infrastructure for manufacturers.
ANRF Research collaboration and innovation.
Startup India Support for entrepreneurship and emerging businesses.
Export Promotion Mission Export finance, standards, market access and outreach.
Khelo India Sports participation, talent development and infrastructure.
Khelo Bharat Niti 2025 Connects sports with economic growth, entrepreneurship and social inclusion.

12. Link with Khelo India and Khelo Bharat Niti 2025

Khelo India

Khelo India is a broader sports development initiative. According to the supplied PIB backgrounder, it was launched in 2017 by bringing together the Rajiv Gandhi Khel Abhiyan, the Urban Sports Infrastructure Scheme and the National Sports Talent Search Scheme.

Five Pillars Mentioned in the Backgrounder
  1. Training centres and talent identification.
  2. Capacity building for coaches and support staff.
  3. Sports science and technology.
  4. Competitions and leagues.
  5. Sports infrastructure.

Khelo Bharat Niti 2025

The policy recognises sport as a contributor to nation-building, economic growth and social inclusion. It also emphasises grassroots participation, talent development, sports infrastructure and opportunities for entrepreneurship and investment.

How the initiatives complement each other

Khelo India focuses on sports development and participation, while the Khelo India Sports Goods Manufacturing Scheme focuses on strengthening the industrial ecosystem that designs and manufactures sports equipment.

13. Manufacturing, Make in India and Atmanirbhar Bharat

The scheme supports the wider goals of domestic manufacturing, value addition, industrial competitiveness and export growth. It is aligned with the broad objectives of Make in India, Atmanirbhar Bharat and Viksit Bharat@2047.

The supplied PIB backgrounder also discusses Production Linked Incentive (PLI) schemes across 14 sectors. It reports the following cumulative figures as of June 2026:

₹2.6 lakh crore
Investment attracted
₹23.8 lakh crore
Production and sales
₹15.5 lakh crore+
Exports supported
14.6 lakh
Jobs created

These are the PLI figures reported in the supplied backgrounder and relate to the wider PLI programme, not solely to the Khelo India Sports Goods Manufacturing Scheme.

14. Expected Benefits and Challenges

✓ Expected Benefits
  • Expansion of domestic manufacturing.
  • Employment and skill development.
  • Support for MSMEs and start-ups.
  • Improved product quality and certification.
  • Greater export opportunities.
  • Research and product innovation.
  • Stronger industrial supply chains.
! Implementation Priorities
  • Effective use of manufacturing infrastructure.
  • Access to technology and testing facilities.
  • Meeting international standards.
  • Developing skilled workers.
  • Competing on quality and cost.
  • Accessing overseas markets.
  • Coordinating industry and government support.

The scheme's intended impact will depend on effective implementation, industry participation, access to infrastructure, product innovation and the ability of Indian manufacturers to meet international market requirements.

15. Conclusion

The Khelo India Sports Goods Manufacturing Scheme aims to connect India's sporting ambitions with industrial development. Through manufacturing zones, investment incentives, certification, research, skills and export promotion, it seeks to build a globally competitive sports goods manufacturing ecosystem.

For BPSC and UPSC aspirants, the scheme is relevant to industrial policy, MSME development, employment generation, innovation, export promotion, sports governance and the vision of Atmanirbhar Bharat.

Quick Revision for BPSC & UPSC

Question Area Important Fact
Approval date 28 October 2026
Total outlay ₹1,856.67 crore
Scheme period FY 2026–27 to FY 2033–34
Major manufacturing clusters Jalandhar, Punjab; Meerut, Uttar Pradesh
Investment and production support Combined outlay of ₹1,130 crore
Certification support ₹105 crore
Anchor investment threshold At least ₹100 crore
Start-up grant ceiling Up to ₹20 lakh for eligible DPIIT-registered sports start-ups
Key policy alignment Khelo India, Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat

References

EduPrimeTimes
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