The Khelo India Sports Goods Manufacturing Scheme, approved by the Union Cabinet chaired by Prime Minister Narendra Modi, has drawn widespread praise from industry representatives in Ludhiana, who say the initiative will strengthen India's sports manufacturing base, promote youth fitness, and sharpen the country's competitiveness in global sporting goods markets. The scheme carries a total outlay of ₹1,856.67 crore and will run from 2026 to 2033–34.

What the Scheme Covers

First announced in the Union Budget for 2026–27, the scheme targets investment promotion, technology adoption, research and innovation, skill development, quality certification, and market expansion in the sports goods sector. It aims to simultaneously boost domestic manufacturing capacity and grow India's share of global sporting goods exports — two goals that have long been treated separately in industrial policy.

Industry Reaction from Ludhiana

D.S. Chawla, former president of the United Cycle Parts and Manufacturers Association, described the Cabinet decision as a positive step for both the sports industry and public health. He noted that the sector had remained overlooked for years despite its importance, and argued that stronger support for sports was especially needed at a time when excessive mobile phone use was becoming widespread among young people.

Chawla, who is associated with the bicycle industry, pointed out that cycling engages the entire body and ranks among the most effective forms of exercise. He expressed confidence that the scheme would encourage greater participation in physical activity across the country.

Small Businesses Must Not Be Left Behind

A note of caution came from Harvinder Singh, another industry representative from the bicycle sector. While welcoming the government's intent to support manufacturing units, Singh stressed that scheme benefits must reach small enterprises at the grassroots level rather than being absorbed predominantly by larger companies. He argued that smaller manufacturers routinely struggle to access government programme advantages, while bigger players are better positioned to navigate eligibility requirements.

'Ensuring wider participation,' Singh said, 'would help maximise the impact of the scheme and support the growth of local manufacturers.'

Broader Context and What's Next

India's sports goods sector, centred significantly in Jalandhar and Ludhiana in Punjab, has historically punched below its weight in global export rankings despite a strong manufacturing heritage. The new scheme represents a structural push to change that trajectory. Notably, it comes alongside a broader push by the Centre to formalise and scale domestic manufacturing across consumer goods categories.

Implementation details, including disbursement criteria and eligibility thresholds for small and medium enterprises, are expected to be formalised by the relevant ministries in the months ahead. Stakeholders in Ludhiana's bicycle and sports equipment clusters will be watching closely to ensure grassroots access is built into the scheme's architecture from the outset.