Overview: 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. It provides investment incentives, assistance for MSME manufacturing clusters, international certification funding and startup grants. The initiative aims to strengthen India’s sports goods manufacturing industry and improve its position in international markets.
India has established sports goods manufacturing centres in Jalandhar and Meerut, supported by a large network of small manufacturers and suppliers. The country produces cricket bats, protective gear, inflatable balls and gym equipment. However, access to modern machinery, testing facilities, international quality standards and export markets remains important for improving the industry’s competitiveness.
The Union Cabinet, on 28 October, 2026, approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of ₹1,856.67 crore. The Ministry of Youth Affairs and Sports is associated with the scheme, which seeks to attract manufacturing investment, upgrade existing MSME clusters and encourage product innovation and exports.
Khelo India Sports Goods Manufacturing Scheme: Key Benefits
The scheme covers manufacturing investment, infrastructure, certification, research and export promotion. Its main provisions include:
1. Investment Incentives for Sports Goods Manufacturers
A combined allocation of ₹1,130 crore has been earmarked for two investment-related components:
- Anchor Investment Support: Eligible anchor investors investing at least ₹100 crore in manufacturing facilities within designated Sports Goods Manufacturing Zones (SGMZs) can receive capital expenditure assistance of 20%.
- Turnover Linked Support: Manufacturers investing ₹10 crore or more may qualify for incentives of up to 15%.
2. Upgrading Existing MSME Manufacturing Clusters
Small and micro enterprises account for nearly 90% of India’s sports goods production. The scheme provides for upgrading existing manufacturing clusters through common facilities and shared infrastructure, with cost-sharing arrangements involving State governments.
This arrangement will improve access to shared manufacturing facilities for smaller enterprises. It should not, however, be understood as an individual cash grant to every MSME.
3. Assistance for International Certification
Manufacturers seeking overseas markets often need certifications recognised by international sporting bodies. The scheme allocates ₹105 crore towards obtaining and renewing certifications from International Sports Federations.
The assistance covers:
- First-time certification: 70% of the certification cost.
- Renewal: 50% of the renewal cost.
4. Grants for Sports Startups and Research
DPIIT-registered sports startups will be eligible for grants of up to ₹20 lakh, subject to the applicable conditions. The funding is intended to cover product development, testing, validation and commercialisation.
The scheme also encourages research collaboration through the Anusandhan National Research Foundation (ANRF). Centres of Excellence at educational and research institutions will work on sports equipment, material sciences, protective gear and advanced manufacturing technologies.
5. Manufacturing Zones, Skills and Export Promotion
The proposed Sports Goods Manufacturing Zones will bring manufacturers, suppliers, testing facilities, design and prototyping centres, and supporting enterprises together.
According to the PIB backgrounder, four integrated zones, each covering more than 300 acres, may be developed through convergence with the Bharat Audyogik Vikas Yojna (BHAVYA) and NICDC Industrial Parks.
Export promotion will include an India Sports Expo, a Brand India campaign and market-development initiatives linked with the Export Promotion Mission. The scheme will also encourage industry-related skill development in collaboration with the Ministry of Skill Development and Entrepreneurship.
India’s sports equipment exports reportedly stood at approximately $ 275 million in 2024, compared with global exports of around $ 52 billion. Estimates project that Indian exports could reach $8.1 billion by 2036, potentially generating 54 lakh additional direct and indirect jobs.
What Should Sports Goods Manufacturers and MSMEs Prepare For?
Businesses planning to expand production or enter international markets should review their existing registrations, financial records and compliance arrangements.
Important areas include:
- Business structure: Enterprises planning to bring in investors or expand operations should review their company or LLP structure, ownership arrangements and necessary corporate approvals.
- MSME registration: Existing enterprises should check that their Udyam registration details are accurate and updated. The PIB backgrounder does not prescribe it as a universal eligibility condition for every scheme benefit.
- Financial and tax records: Businesses should maintain proper financial statements, investment records, GST registration and returns, invoices and input tax credit records.
- Export readiness: Manufacturers planning overseas sales should review their Import Export Code (IEC), export documentation and GST requirements, including Letter of Undertaking (LUT), where applicable.
- Startup recognition: Sports startups interested in the grant should verify their DPIIT registration and check the relevant eligibility conditions.
These are general business-readiness measures, not additional eligibility conditions announced under the scheme. The detailed operational guidelines should be checked before businesses make investment decisions based on expected incentives.
Setindiabiz Support
Establishing a manufacturing business, bringing in investors and entering overseas markets involve legal structuring, registrations and continuing regulatory compliance.
Setindiabiz supports business establishment and compliance requirements, including Private Limited Company incorporation, LLP incorporation, Udyam registration, DPIIT startup recognition, GST registration and compliance, and Import Export Code (IEC) registration.
For businesses establishing manufacturing operations in India with overseas investment, we also offer India Entry Services.
FAQs
The scheme has an approved outlay of ₹1,856.67 crore for FY 2026-27 to FY 2033-34. It covers manufacturing investment, MSME cluster development, certification, research, startup funding, skill development and export promotion.
Eligible anchor investors investing at least ₹100 crore in designated Sports Goods Manufacturing Zones can receive 20% capital expenditure assistance. Manufacturers investing ₹10 crore or more may qualify for turnover-linked incentives of up to 15%, subject to the scheme conditions.
Yes. Existing sports goods manufacturing clusters can receive assistance for shared infrastructure and common facilities. DPIIT-registered sports startups are also eligible for grants of up to ₹20 lakh, subject to the applicable conditions.
The Khelo India Sports Goods Manufacturing Scheme brings together investment incentives, MSME infrastructure, certification assistance, startup funding and export promotion to strengthen India’s sports goods industry.
Manufacturers and entrepreneurs should identify the benefits relevant to their businesses, examine the applicable conditions and keep their corporate, financial, tax and export records in order before undertaking expansion.
