The Union Cabinet, chaired by Prime Minister Narendra Modi, on 28 October 2026 approved the Khelo India Sports Goods Manufacturing Scheme with a total outlay of ₹1,856.67 crore, covering the period 2026 to 2033-34. The scheme aims to transform India into a globally competitive hub for the design, development, and manufacture of sports goods, while reducing import dependence and expanding export reach.

What the Scheme Covers

First announced in the Union Budget 2026-27, the scheme supports investment, technology adoption, research and innovation, skill development, quality certification, and market development across the sports goods sector. It is aligned with the government's Khelo Bharat Niti 2025, Make in India, and Atmanirbhar Bharat frameworks.

A central feature is the development of dedicated Sports Goods Manufacturing Zones (SGMZs) — cluster-based industrial ecosystems that co-locate manufacturers, suppliers, testing facilities, design centres, and ancillary enterprises. These zones will be built through convergence with the BHAVYA Scheme and NICDC Industrial Parks, leveraging existing infrastructure to reduce setup costs and improve efficiency.

Investment and Production Incentives

Two key financial components together carry an outlay of ₹1,130 crore. The Anchor Investment Support component targets leading domestic and global manufacturers, brands, and retail chains, encouraging them to establish facilities within the designated SGMZs and build supplier ecosystems around them. The Turnover Linked Support component incentivises higher production volumes and sustained capacity expansion over time.

These interventions are expected to catalyse significant private investment, generate employment across the value chain, and enhance domestic value addition, according to the Cabinet statement.

Focus on MSMEs, Quality, and Innovation

Recognising that micro, small and medium enterprises (MSMEs) form the backbone of India's sports goods sector, the scheme provides targeted support for upgrading existing manufacturing clusters and building shared infrastructure. An outlay of ₹105 crore is earmarked to help manufacturers obtain and renew certifications from International Sports Federations, improving access to global markets.

On the innovation front, the scheme will fund Centres of Excellence in premier educational and research institutions, covering sports equipment, material sciences, protective gear, and advanced manufacturing. Research collaboration will be encouraged through the Anusandhan National Research Foundation, and dedicated support for start-ups will be offered in alignment with the Startup India initiative.

Skill Development and Export Push

Given the employment-intensive nature of the sector, skill development initiatives will be rolled out in collaboration with the Ministry of Skill Development and Entrepreneurship and industry stakeholders. These efforts are designed to meet growing demand for trained manpower and support long-term sector growth.

On the export front, the scheme will leverage the Export Promotion Mission for branding, outreach, and market development activities aimed at expanding India's footprint in international sports goods markets.

Broader Significance

The approval comes as India seeks to translate its growing domestic sports ecosystem — underpinned by programmes such as Khelo India and Fit India — into manufacturing and export strength. This is the first dedicated central scheme for sports goods manufacturing, positioning the sector within the wider Viksit Bharat@2047 industrial vision. The scheme's seven-year horizon signals a long-term policy commitment rather than a short-cycle incentive, though execution across the SGMZ pipeline and MSME cluster upgrades will be the real test of its ambition.