Cabinet approves ₹1,856-crore Khelo India sports goods manufacturing scheme

The Union Cabinet on Wednesday approved a ₹1,856-crore scheme to promote domestic sports goods manufacturing, develop dedicated manufacturing zones and position India as a global hub for high-quality sports equipment.

The Khelo India Sports Goods Manufacturing Scheme will be implemented over eight years, from 2026-27 to 2033-34.

Briefing the media after Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said that there are three primary clusters for sports goods manufacturing in the country: Meerut in Uttar Pradesh, the Jalandhar-Ludhiana region in Punjab, and Jammu.

The vast majority of sports goods manufacturing takes place within the MSME (Micro, Small, and Medium Enterprises) sector.

"This scheme aims to address several key areas: enabling these enterprises to scale up, upgrade their technology, utilize superior materials, and streamline the certification process," Vaishnaw said.

"By simplifying certification, Indian sports goods manufacturers will gain better access to global markets," he added.

The scheme has two components: manufacturing incentives and ecosystem development interventions.

Under the manufacturing component, the government will support the development of four integrated sports goods manufacturing zones, each spread over more than 300 acres, in convergence with the Department for Promotion of Industry and Internal Trade's (DPIIT) BHAVYA Scheme and parks developed by the National Industrial Corridor Development Corporation (NICDC).

Anchor investors committing at least ₹100 crore will be eligible for capital expenditure support of 20%, while manufacturers investing ₹10 crore or more can receive turnover-linked incentives of up to 15%.

The scheme will also provide support to existing manufacturing clusters by upgrading common facilities through a cost-sharing arrangement with state governments.

The government will support product certification, testing, research, skill development, start-ups and branding to improve the competitiveness of Indian sports goods manufacturers.

The scheme will cover 70% of the cost of first-time certification and 50% of renewal costs, helping manufacturers meet quality standards and access domestic and international markets.

It will also support Centres of Excellence, co-funding for research and development, and skill development in collaboration with the Anusandhan National Research Foundation (ANRF) and the Ministry of Skill Development and Entrepreneurship.

Sports goods start-ups registered with the DPIIT will be eligible for grants of up to ₹20 lakh.