India Approves INR 1,856 Crore Khelo India Scheme to Boost Sports Goods Manufacturing

November 06, 2026

The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme on 28 October 2026, with an outlay of INR 1,856.67 crore for FY 2026-27 to FY 2033-34. The scheme covers manufacturing investment, production support, industrial zones, MSME upgrades and international certification. The Cabinet announcement does not identify individual funding recipients or confirm the commissioning of manufacturing zones.

What Is the Khelo India Sports Goods Manufacturing Scheme?

The scheme aims to build a competitive domestic sports goods industry. Reports citing the official announcement list its focus areas as manufacturing investment, technology adoption, research and innovation, skill development, quality certification and market development. Stated expected outcomes include attracting private investment, reducing import dependence and raising domestic value addition. No numeric targets for output, exports or jobs were given.

What Is the Industry Context Behind the Scheme?

NITI Aayog's March 2026 report on the sports equipment sector gives the background. It reported India's sports equipment exports at about USD 275 million in 2024, roughly 0.5% of global exports of about USD 52 billion, down from 0.7% in 2014. The report also found that imports supply about 63% of domestic consumption. Jalandhar and Meerut form the core of the sector, and about 90% of production comes from small and micro enterprises.

NITI Aayog listed raw-material duties and costs, low mechanisation, and expensive international testing and certification among the constraints. It estimated a cost disadvantage of about 15% against leading Asian peers. These are NITI Aayog's findings, not provisions of the approved scheme. The approved scheme's certification support and cluster upgrades address some of these constraints. Raw-material duties and testing laboratories were not reported as part of it.

The Union Budget 2026–27 separately announced INR 500 crore for promoting sports goods manufacturing. The subsequent Cabinet approval provides a multi-year scheme outlay of INR 1,856.67 crore. These figures should not be added together or treated as separate funding commitments without an official clarification of their relationship.

How Much Funding Has Been Approved, and for How Long?

The total outlay is INR 1,856.67 crore, over FY 2026-27 to FY 2033-34. This total is separate from the individual components. Two components carry stated amounts. INR 1,130 crore is a combined allocation for Anchor Investment Support and Turnover Linked Support. INR 105 crore is for international sports federation certification. Reports do not break down the rest of the outlay, about INR 621.67 crore by simple subtraction, across the other components.

What Are Sports Goods Manufacturing Zones?

The Sports Goods Manufacturing Zones are planned cluster-based zones that bring together manufacturers, suppliers, testing facilities, design and prototyping centres and ancillary enterprises. They are to be developed through convergence with the BHAVYA Scheme and NICDC Industrial Parks. Reports give no number of zones, locations, land requirements, timelines or a budget for this component. The zones are proposed and are not operational.

What Are Anchor Investment Support and Turnover Linked Support?

Anchor Investment Support is intended to attract major manufacturers and other industry participants, while Turnover Linked Support aims to encourage production growth and manufacturing expansion. The approved scheme provides a combined allocation of INR 1,130 crore for these components. Manufacturers should verify eligibility, incentive calculations, disbursement conditions and application procedures through the applicable implementation guidelines.

How Will the Scheme Support Sports Goods MSMEs?

Existing sports goods clusters and MSMEs are to receive support for upgrading common facilities and shared infrastructure. No amount for this component was reported. Jalandhar and Meerut are among India's established sports goods manufacturing centres, according to NITI Aayog. The reports reviewed do not say whether they will be selected under the scheme. Cluster selection criteria were not given.

What Technology, Research and Certification Support Is Proposed?

INR 105 crore is allocated to help manufacturers obtain and renew certification from international sports federations. Such approvals matter for equipment used in competition and for export credibility. The scheme also proposes Centres of Excellence at research institutions on sports equipment, materials and protective gear. They are to link with the Anusandhan National Research Foundation. Start-up support and skilling programmes are also included.

How Could the Scheme Encourage New Sports Goods Manufacturing Plants?

The proposed manufacturing zones, investment incentives and certification assistance could improve conditions for new sports goods manufacturing projects and capacity expansion. However, their financial impact will depend on scheme implementation, location availability, eligibility conditions and the timing of support. Investors should evaluate project viability independently of unconfirmed incentives.

What Should Manufacturers Verify Before Planning Investments?

Before committing capital, manufacturers should check several points in the official guidelines:

• Whether their product category and unit size are eligible;
• How Anchor Investment Support and Turnover Linked Support are defined and capped;
• Where zones will be located and when land will be available;
• How certification support is claimed;
• Whether support applies to expansions of existing plants.

Applicants should also confirm timelines and compliance conditions before ordering machinery.

Support that depends on production or turnover also affects financing. Lenders will want to see how incentives are calculated and when they are paid before treating them as cash flow. Until the guidelines appear, incentives should not be built into a base-case financial model.

The scheme sets direction for India's sports goods industry, but its impact will depend on guidelines, zone delivery and investor take-up. Manufacturers should plan on the facts approved so far and not on assumed incentive terms.

IMARC Engineering’s Perspective

The Khelo India Sports Goods Manufacturing Scheme could create opportunities for manufacturers planning new production facilities, machinery upgrades and capacity expansion. However, investment decisions should be based on project-specific feasibility and confirmed incentive conditions. Manufacturers should evaluate industrial locations based on supplier networks, labour availability, logistics infrastructure, utilities and access to proposed manufacturing clusters.

Machinery selection, production capacity, plant layout and capital expenditure should reflect the intended product category and manufacturing process. A Detailed Project Report (DPR) can help assess technical feasibility, CAPEX, operating costs, implementation schedules and potential project risks. Financial projections should distinguish confirmed incentives from benefits dependent on future guidelines. IMARC Engineering supports manufacturing investors through feasibility studies, location assessment, CAPEX planning, DPR preparation and industrial project management.