The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026 with a total outlay of ₹1,856.67 crore for 2026-27 to 2033-34. The scheme was first announced in the Union Budget 2026-27 and aims to build a globally competitive sports goods industry in India. It links investment, manufacturing, innovation and exports to reduce import dependence and supply quality equipment for Indian athletes.
What Is the Khelo India Sports Goods Manufacturing Scheme?
The Khelo India Sports Goods Manufacturing Scheme is a Central Sector initiative with an outlay of ₹1,856.67 crore for 2026-27 to 2033-34. The Ministry of Youth Affairs and Sports will implement the scheme to expand domestic manufacturing, improve quality certification, support innovation and raise exports of Indian sports goods.
The Union Budget 2026-27 first announced a dedicated push for sports goods, with an initial provision of ₹500 crore for promotion of sports goods manufacturing. The Cabinet approval on 28 October 2026 turned that announcement into a full eight year scheme. A Central Sector scheme means full funding comes from the Union Government, with implementation guided by the Centre.
The scheme is aligned with Khelo Bharat Niti 2025, which is the National Sports Policy 2025, along with Make in India and Atmanirbhar Bharat. Make in India promotes domestic manufacturing to cut imports, while Atmanirbhar Bharat aims for self reliance across key sectors. The government expects the scheme to attract private investment of around ₹6,800 crore, create jobs across the value chain and strengthen India’s place in global sports supply chains.
| Component | Outlay |
|---|---|
| Total scheme outlay for 2026-27 to 2033-34 | ₹1,856.67 crore |
| Anchor Investment Support and Turnover Linked Support | ₹1,130 crore |
| Certification from International Sports Federations | ₹105 crore |
| Remaining support for zones, MSME clusters, research, skills and exports | Balance amount |
What Is the Khelo India Programme?
The Khelo India National Programme for Development of Sports is the flagship talent search programme of the Ministry of Youth Affairs and Sports. The programme was launched in 2016-17 and revamped in October 2017 to find young talent, build sports infrastructure and hold annual competitions.
The Khelo India programme was introduced to fix a clear gap. Earlier sports schemes lacked coordination between the Centre and states. The National Games were held after long gaps, so many young athletes had no regular platform. Khelo India created a yearly competition structure from school to university level along with talent identification, coaching and infrastructure support.
The revamped programme for 2017-18 to 2019-20 had an outlay of ₹1,756 crore across 12 verticals. These verticals covered playfield development, community coaching, school and university competitions, rural and indigenous games, sports for women and persons with disabilities, and creation of centres of excellence. The outlay rose to ₹3,790.50 crore for 2021-22 to 2025-26. The Budget for 2026-27 provided ₹924.35 crore for Khelo India.
Khelo India is held every year in different formats. The calendar includes the Khelo India Youth Games, Khelo India University Games, Khelo India Winter Games, Khelo India Para Games and newer editions like tribal and beach games. The Sports Authority of India (SAI), which was set up in 1984 and is headquartered in New Delhi, supports training and camps under the wider ecosystem. The Target Olympic Podium Scheme (TOPS), launched in 2014, then supports the top athletes identified through this pipeline for Olympic level medals.
| Period | Key development |
|---|---|
| 2016-17 | Khelo India launched with twin goals of mass participation and excellence |
| October 2017 | Cabinet approves revamped programme with ₹1,756 crore for three years |
| 31 January 2018 | First Khelo India School Games launched in New Delhi |
| 1 July 2025 | Cabinet approves Khelo Bharat Niti 2025, the new National Sports Policy |
The Khelo Bharat Niti 2025 replaces the National Sports Policy of 2001. The Ministry of Youth Affairs and Sports notified the policy after wide consultations with states, federations and athletes. The vision is sports for nation building. The five pillars are excellence on the global stage, sports for economic development, sports for social development, sports as a peoples movement, and integration with education under the National Education Policy 2020. The policy also supports India’s ambition around the 2036 Olympic Games.
How Will the Scheme Build Manufacturing Zones and Attract Investment?
The Ministry of Youth Affairs and Sports will develop four dedicated Sports Goods Manufacturing Zones (SGMZs) to create cluster based industrial ecosystems. Each zone will cover more than 300 acres inside larger industrial parks. Each zone will bring manufacturers, suppliers, testing laboratories, design and prototyping centres and ancillary units to one location.
The Sports Goods Manufacturing Zones will not stand alone. The zones will come up in convergence with the BHAVYA Scheme and parks developed by the National Industrial Corridor Development Corporation (NICDC). BHAVYA stands for Bharat Audyogik Vikas Yojna. The Department for Promotion of Industry and Internal Trade (DPIIT) notified the BHAVYA Scheme in April 2026 with an outlay of ₹33,660 crore to develop 100 plug and play industrial parks from 2026-27 to 2031-32. NICDC works under DPIIT and acts as the project management agency. This convergence gives sports goods units ready land, roads, power, logistics links and single window clearances.
The scheme uses two money tools to bring private capital. The Anchor Investment Support targets large domestic and global manufacturers, brands and retail chains. An anchor investor that commits at least ₹100 crore inside a designated zone can receive capital expenditure support of 20 percent. The idea is simple. A large factory draws smaller suppliers around it. That builds a full supply chain for raw material, stitching, moulding, packaging and testing.
The Turnover Linked Support rewards firms that raise production after investing. A manufacturer that invests ₹10 crore or more can receive incentives of up to 15 percent linked to turnover growth. This tool pushes capacity expansion and sustained manufacturing growth rather than one time construction. Together the two tools have a combined outlay of ₹1,130 crore. The government expects these incentives to cut import dependence, raise domestic value addition and improve competitiveness in foreign markets.
How Does the Scheme Support MSMEs, Quality Certification and Innovation?
Micro, small and medium enterprises dominate Indian sports goods production. The scheme therefore keeps a special focus on existing clusters. The Ministry of Youth Affairs and Sports will provide assistance for upgrading common facilities and shared infrastructure in these clusters. Shared testing labs, tool rooms, design studios and warehousing lower costs for small units. Cost sharing with state governments will support these upgrades.
Quality certification is the second pillar. International buyers and tournament organisers accept only equipment that meets standards set by International Sports Federations. These federations are the global governing bodies for each sport. They test balls, rackets, sticks and protective gear for size, weight, bounce and safety. Without their approval, an Indian football or hockey stick cannot be used in an official international match.
The scheme earmarks ₹105 crore for this gap. The support will cover 70 percent of the cost of first time certification and 50 percent of renewal costs. This help reduces the financial burden on small manufacturers and builds trust in Indian made goods. Better certification also opens access to domestic leagues and government procurement that insist on certified equipment.
Research and skill form the third pillar. The scheme will fund Centres of Excellence in leading educational and research institutions. These centres will work on sports equipment design, material sciences, protective gear and advanced manufacturing technologies. Research will also converge with the Anusandhan National Research Foundation. The Anusandhan National Research Foundation was established through the Anusandhan National Research Foundation Act, 2023 to guide high level research across universities and labs.
Start-ups will receive dedicated help in line with Startup India. Startup India was launched in 2016 by DPIIT to support new ventures through funding, tax benefits and mentoring. Under the sports goods scheme, start-ups can develop, test, validate and commercialise new products and processes. Skill development will run with the Ministry of Skill Development and Entrepreneurship and industry partners. The training will match industry needs in stitching, moulding, assembly, quality testing and machine operation. This matters because sports goods manufacturing is employment intensive and needs trained hands.
Why Do Meerut and Jalandhar Matter for Sports Goods?
India’s sports goods story starts in two old clusters. Jalandhar in Punjab and Meerut in Uttar Pradesh together account for 75 to 80 percent of total domestic production. The two cities host more than 3,000 manufacturing units and thousands of household workshops. The roots go back to the Partition in 1947, when skilled makers from Sialkot moved to Jalandhar and Meerut. Over decades the clusters built links for raw material, stitching, woodwork and packaging.
The product range is wide. Indian units make inflatable balls, cricket bats and balls, hockey sticks, badminton equipment, gymnasium and athletic gear, nets and protective wear. Around 60 percent of Indian sporting goods are exported, while the domestic market absorbs the rest. Exports reach more than 200 countries, with the United States, the United Kingdom, Germany, Australia and France among the top buyers. The wider industry provides work to about five lakh people, mostly through micro, small and medium enterprises.
The Sports Goods Export Promotion Council (SGEPC) anchors this trade. SGEPC is a Government sponsored body set up in 1958 under the Ministry of Commerce and Industry. The council represents leading manufacturers and exporters. The council organises participation in foreign trade fairs, buyer seller meets and market studies. The council also guides exporters on the Market Access Initiative (MAI) and the Remission of Duties and Taxes on Exported Products (RoDTEP). RoDTEP refunds embedded taxes that are not otherwise rebated, which lowers export costs.
The new scheme wants to move beyond the old hubs and old products. The Information and Broadcasting Minister Ashwini Vaishnaw said after the Cabinet meeting that new hubs will be created (as of October 2026). The focus will include specialised items where India still imports heavily, such as archery bows, kabaddi mats and pellets used in shooting sports. The plan also mentions strengthening centres beyond Jalandhar and Meerut, including Ludhiana, Jammu and new zones. The Meerut sports goods cluster already carries the Geographical Indication (GI) tag recognition push and benefits from Uttar Pradesh export support, which shows how state policy and central schemes can combine.
Significance for Economy, Exports and Sporting Ambitions
The economic logic is direct. India buys a large share of high end sports equipment from abroad. Domestic manufacturing of certified equipment keeps more value inside the country. Higher domestic value addition means more stages of production, from material to finishing, happen in India. Private investment, local suppliers and logistics services then create jobs for youth in and around the new zones and upgraded clusters.
Exports give the second gain. Global buyers want consistent quality, timely delivery and certified products. The combination of common testing labs, federation certification and branding support addresses all three needs. The scheme will use the Export Promotion Mission for overseas outreach, visibility and market access. Better visibility helps Indian firms move from job work for foreign brands to own brand sales with higher margins.
The sports logic is equally strong. Training quality depends on equipment quality. Affordable and certified Indian equipment will help schools, Khelo India Centres, district academies and national camps. The Fit India Movement, launched in 2019 to promote fitness as a daily habit, also needs low cost and durable goods for mass use. When athletes train on the same standard of equipment that is used in international events, performance improves.
The scheme fits the larger policy arc. Khelo Bharat Niti 2025 treats sports as a driver of economic growth, not only medals. Stronger sports manufacturing supports tourism, events, start-ups and private participation through public private partnerships. The Cabinet note links the scheme to Viksit Bharat 2047, the national goal of a developed India by 2047. A self reliant sports goods base thus serves both industry and the dream of becoming a leading sporting nation.
Key Takeaways
- The Khelo India Sports Goods Manufacturing Scheme was approved on 28 October 2026 with an outlay of ₹1,856.67 crore for 2026-27 to 2033-34.
- The scheme earmarks ₹1,130 crore for Anchor Investment Support and Turnover Linked Support to attract investment and expand production.
- Manufacturers will receive ₹105 crore for federation certification, covering 70 percent of first time costs and 50 percent of renewal costs.
- The scheme will build four Sports Goods Manufacturing Zones of more than 300 acres each in convergence with BHAVYA and NICDC parks.
- Jalandhar and Meerut account for 75 to 80 percent of domestic output, while SGEPC, set up in 1958, promotes sports goods exports.
- The scheme aligns with Khelo Bharat Niti 2025, approved on 1 July 2025, which replaced the National Sports Policy of 2001.
