Khelo India Sports Goods Manufacturing Scheme Explained: Cabinet Approves ₹1,856.67 Crore Outlay

The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of ₹1,856.67 crore for FY 2026-27 to FY 2033-34 on 28th October, 2026. It was first announced in Union Budget 2026-27.

What Is the Khelo India Sports Goods Manufacturing Scheme?

The scheme aims to make India a global hub for designing and manufacturing sports goods. It supports investment, technology, innovation, skills and market development. Jalandhar and Meerut are the main clusters, and small and micro units make nearly 90% of the output.

Key Interventions Under the Khelo India Sports Goods Manufacturing Scheme

Manufacturing zones

Up to four Sports Goods Manufacturing Zones (SGMZs), each over 300 acres.

Investment support

 ₹1,130 crore for two components. Anchor Investment Support gives 20% capital support for investments of ₹100 crore or more. Turnover Linked Support gives up to 15% incentive for investments of ₹10 crore or more.

Certification

₹105 crore to cover 70% of first-time and 50% of renewal costs for international federation certificates.

Clusters and MSMEs

Cost-sharing with States to upgrade common facilities.

Research and start-ups

Centres of Excellence and grants of up to ₹20 lakh for DPIIT-registered start-ups.

Skills and exports

Skill training, an India Sports Expo, and a Brand India campaign.

Why Does the Khelo India Sports Goods Manufacturing Scheme Matter?

• Stronger domestic manufacturing: Manufacturing zones and production support will raise capacity, add more value within India, and reduce imports.
• Growth of MSMEs: Small and micro units make nearly 90% of India’s sports goods, so better common facilities will help local businesses and livelihoods.
• Better quality and innovation: Research centres, start-up grants, and international certification will improve product standards.
• Jobs and skills: Industry-linked training will build a skilled workforce. Exports could reach about US$8.1 billion by 2036, creating around 54 lakh jobs.
• Bigger global presence: India exports only US $275 million of equipment, while global equipment exports were about US $52 billion in 2024. Branding and market support can narrow this gap.
• Support for sports: Certified, good-quality equipment will help athlete development under Khelo India and Fit India.
• Rising demand: The 2028 Los Angeles Olympics, the 2030 Commonwealth Games in Ahmedabad, and the 2032 Brisbane Olympics will increase demand for equipment.

Convergence with National Schemes and Initiatives

1. Bharat Audyogik Vikas Yojna (BHAVYA)

100 plug-and-play industrial parks with an allocation of ₹33,660 crore. Sports Goods Manufacturing Zones will be developed using its infrastructure.

2. National Industrial Corridor Development Corporation Limited (NICDC)

Develops industrial smart cities. The zones will use infrastructure in NICDC Industrial Parks.

3. Anusandhan National Research Foundation (ANRF)

Supports research between institutions and industry. It will co-fund research in sports goods.

4. Startup India

Supports new businesses through seed funding and credit guarantees. The scheme’s start-up grants will align with it.

5. Export Promotion Mission

Outlay of ₹25,060 crore for 2025-26 to 2030-31, with two components, Niryat Protsahan and Niryat Disha. It will support branding and market access.

6. Khelo India Scheme and Fit India Movement

Khelo India supports talent, training, and sports infrastructure. Fit India promotes fitness. Both will benefit from better-quality equipment.