Key Details
Announced in the Union Budget 2026–27 and now approved by the Cabinet, the scheme has an outlay of ₹1,856.67 crore for the period from 2026 to 2033–34. It combines support for new production with measures intended to improve the capabilities of existing manufacturers.
Manufacturing zones: Dedicated Sports Goods Manufacturing Zones are envisaged to bring producers, suppliers, testing facilities and design centres together. Their development will draw on infrastructure under the BHAVYA Scheme and NICDC Industrial Parks.
Investment and output: ₹1,130 crore is earmarked jointly for support to anchor manufacturers and turnover-linked incentives intended to expand production.
Smaller producers: Existing sports goods clusters can receive assistance for upgrades, common facilities and shared infrastructure.
Quality and innovation: ₹105 crore will support manufacturers seeking or renewing certification from International Sports Federations. The scheme also provides for research centres and start-up support.
Skills and markets: Industry-linked training, branding and market-development activities are intended to strengthen employment and exports.
New Zones Will Link Manufacturing with Testing and Design
The proposed zones are meant to do more than provide factory space. By locating manufacturers alongside suppliers, testing facilities and design centres, the scheme seeks to help firms develop products, verify their performance and produce at greater scale. It does not yet specify how many zones will be established or where they will be located.
Support for anchor manufacturers—including domestic and international brands—is paired with turnover-linked support for higher output. These are incentives for future investment and production, not investment or export gains already realised.
Existing Clusters and Product Standards Also Receive Support
The scheme provides a separate route for micro, small and medium enterprises (MSMEs) through upgrades to existing manufacturing clusters and shared facilities. That matters in a sector where smaller producers may struggle to finance specialised infrastructure individually.
International certification is another practical barrier to competing in some sports goods markets. Funding to obtain or renew certification, together with research in equipment, materials and protective gear, aims to help Indian firms develop products that meet buyers’ and sporting bodies’ requirements.
Industrial Growth Is Linked to Sporting and Export Ambitions
The government intends the scheme to serve both domestic sport and international markets. Better equipment could support athletes and sports programmes, while branding and market-development measures seek to expand exports. Industry-aligned skills initiatives are intended to supply the workforce needed if manufacturing capacity grows.
Policy Relevance
The scheme’s reach will depend in part on who can use its facilities and incentives. Manufacturing zones may attract large producers, but smaller firms will also need workable access to testing, design, certification and shared infrastructure if existing clusters are to benefit.
Progress can be judged through zones and facilities made operational, private investment realised, MSME participation, certified products, production and exports. Those measures will distinguish the approved outlay from the competitive manufacturing ecosystem the scheme seeks to build.
Follow the Full Update Here: Cabinet Approves Khelo India Sports Goods Manufacturing Scheme