PIB TrackerRs 1,856.67 crore Khelo India scheme for sports goods
The Cabinet approved an eight-year scheme for up to four sports goods manufacturing zones, 20 per cent capital support for anchor investors and certification subsidies - for an industry that makes most of the world's cricket bats but exports only about US$275 million of sports equipment a year.
What happened
- The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of Rs 1,856.67 crore for FY 2026-27 to FY 2033-34; it was announced in the Union Budget 2026-27 and is aligned with Khelo Bharat Niti 2025.
- It creates integrated Sports Goods Manufacturing Zones (SGMZs) - the backgrounder says there may be four, each over 300 acres - through convergence with the BHAVYA scheme and NICDC industrial parks.
- Anchor Investment Support gives 20 per cent capex support to anchors investing at least Rs 100 crore; Turnover Linked Support pays up to 15 per cent to manufacturers investing Rs 10 crore or more - together Rs 1,130 crore; certification support (Rs 105 crore) covers 70 per cent of first-time and 50 per cent of renewal costs.
- Ecosystem components: cluster upgrades through cost-sharing with States, Centres of Excellence with research co-funded through ANRF, grants of up to Rs 20 lakh for DPIIT-registered sports start-ups, and skilling with the Ministry of Skill Development and Entrepreneurship.
- Market access: an India Sports Expo and a Brand India campaign through the Export Promotion Mission; the Cabinet says certified Indian equipment will also serve Khelo India, Fit India and athlete-development programmes.
For Prelims
- Khelo Bharat Niti 2025: the National Sports Policy approved by the Cabinet on 1 July 2025, replacing the 2001 policy. It treats sport as a driver of economic growth, including through entrepreneurship, investment and sports start-ups - the link this manufacturing scheme claims.
- Where India makes sports goods: Jalandhar (Punjab) and Meerut (Uttar Pradesh) together have over 250 exporting units, more than 1,000 domestic-market units, over 4,000 micro enterprises and nearly 20,000 household units; Ludhiana makes bicycles. Small and micro firms account for nearly 90 per cent of production.
- Market size: the global sports equipment market was about US$140 billion in 2024, projected at about US$283 billion by 2036; global equipment exports were about US$52 billion. India's equipment exports are about US$275 million, with the UK, US and Australia taking over half; the domestic market is about US$2.5 billion, US$0.5 billion of it equipment.
- Where India already leads: Indian brands and makers account for about 75-80 per cent of the global cricket bat market and an estimated 30-35 per cent of cricket helmets. The backgrounder puts potential equipment exports at about US$8.1 billion by 2036, with about 54 lakh direct and indirect jobs.
- Convergence partners: BHAVYA (Bharat Audyogik Vikas Yojna), approved in March 2026, provides for 100 plug-and-play industrial parks with Rs 33,660 crore. NICDC's corridor programme covers 20 industrial smart cities in 13 States, four completed by September 2026. SGMZs are to be built on this infrastructure, not on land of their own.
- Two tiers of support: capex support (20 per cent, Rs 100 crore minimum) is aimed at large lead firms that suppliers follow; turnover-linked support (up to 15 per cent, Rs 10 crore minimum) rewards output, the principle of PLI schemes - which, across 14 sectors, had drawn Rs 2.6 lakh crore of investment and created 14.6 lakh jobs by June 2026.
- Certification: equipment used in sanctioned competition generally needs approval from the relevant International Sports Federation. Paying 70 per cent of first-time and 50 per cent of renewal costs targets a fixed cost that keeps small makers out of the top end of the market.
- Khelo India: launched in 2017 by merging the Rajiv Gandhi Khel Abhiyan, the Urban Sports Infrastructure Scheme and the National Sports Talent Search Scheme. By July 2026 it had approved 349 infrastructure projects (Rs 3,176 crore) and supported 1,067 Khelo India Centres, 267 academies and 2,745 athletes.
For UPSC: Khelo India Sports Goods Manufacturing Scheme: Rs 1,856.67 crore (FY 2026-27 to 2033-34); 4 SGMZs; anchor capex 20%, turnover up to 15% (Rs 1,130 crore); certification Rs 105 crore.
What it is NOT: The scheme papers give rates and thresholds but still itemise only Rs 1,235 crore of the Rs 1,856.67 crore; the zones 'may be four', with no locations named. The US$8.1 billion export figure and 54 lakh jobs describe the sector's potential, not targets the scheme commits to. Neither release states a cap per firm, a domestic-value-addition condition on the turnover incentive, or India's imports of sports goods - the figure that would show how much of the domestic market the scheme is meant to win back.
For Mains
Syllabus: GS2.10 · GS3.8 · Linkage L1
Anchor
India makes most of the world's cricket bats yet exports only about US$275 million of sports equipment in a global trade of about US$52 billion. The scheme tries to turn small-firm clusters into an export industry by adding zones, anchor investors and international certification.
Substantiation (data)
Rs 1,856.67 crore for FY 2026-27 to FY 2033-34; up to four zones of 300-plus acres; 20 per cent capex support for anchors investing Rs 100 crore and up to 15 per cent turnover support (Rs 1,130 crore together); 70 per cent of certification costs; nearly 90 per cent of output today from small and micro firms.
Position
Sports goods suit India's strengths: labour-intensive assembly, MSME clusters and a domestic market growing with Khelo India and a decade of major events. Certification support and anchor investors address the two things small firms cannot do alone - win global approval and reach global buyers.
Counterpoint
At roughly Rs 230 crore a year the scheme is small against a US$52 billion trade, and a third of its outlay is not itemised. Zones built by convergence depend on BHAVYA and NICDC timelines, and anchor brands may simply assemble imported parts, since no local-content condition is stated.
Way forward
Name the zones and per-firm caps; link turnover support to domestic value addition; upgrade Jalandhar and Meerut alongside the new zones so household units are not left behind; and report certified products and exports every year.
Conclusion
Cricket bats show India can dominate a sports product. The scheme bets that the same can happen in balls, protective gear and fitness equipment - its success will show in certified products and export orders, not in zones announced.
Deploys into: Manufacturing in labour-intensive sectors · MSME clusters and exports · Sports policy and the sports economy · Convergence of schemes
Cabinet · 2026-10-28 · PRID 2329481 · PIB source ↗