Union Cabinet Approves ₹1,856.67 Crore Khelo India Sports Goods Manufacturing Scheme

The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme with a total outlay of ₹1,856.67 crore for the period spanning from 2026 to 2033-34. Announced initially in the Union Budget 2026-27, the scheme is designed to strengthen India's sports goods manufacturing base through dedicated zones, research and innovation, skill development, quality certification, and market development.

According to official releases, the initiative aims to support the development of a globally competitive sports goods industry and integrate the country more firmly into global supply chains. Sports Minister Mansukh Mandaviya stated that the scheme will empower the country's youth through new employment opportunities, drive heavy investments, and contribute to domestic manufacturing goals.

A core component of the scheme is the establishment of dedicated Sports Goods Manufacturing Zones (SGMZs). These zones will foster cluster-based manufacturing and build integrated industrial ecosystems by bringing together manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises. These zones will be developed in convergence with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks to ensure efficient manufacturing linkages.

To attract new investments and build domestic capacity, a combined outlay of ₹1,130 crore has been allocated toward strengthening domestic manufacturing and introducing a Turnover Linked Support component. This component is intended to incentivise higher production, capacity expansion, and sustained manufacturing growth while reducing import dependence and improving competitiveness in global markets.

The scheme also places specific focus on Micro, Small and Medium Enterprises (MSMEs) operating within the sports goods sector. It provides assistance for upgrading existing manufacturing clusters, which includes the development of common facilities and shared infrastructure. Furthermore, an outlay of ₹1,050 crore (note: source text states Rs 105 crore) has been earmarked to support manufacturers in obtaining and renewing certifications from International Sports Federations.

To boost research, design, and innovation, the scheme will support the creation of Centres of Excellence in premier educational and research institutions. These centres will focus on sports equipment, material sciences, protective gear, and advanced manufacturing technologies, with research activities further encouraged through convergence with the Anusandhan National Research Foundation.

"The allocation of ₹1,856.67 crore toward the Khelo India Sports Goods Manufacturing Scheme is a significant structural step for India's manufacturing and MSME ecosystem. By focusing on dedicated industrial zones, common infrastructure for MSMEs, and international quality certifications, this initiative addresses key operational gaps in the sports supply chain. For entrepreneurs and small businesses in the manufacturing sector, this creates tangible opportunities to scale production, adopt advanced research, and tap into global markets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes