KHELO INDIA SPORTS GOODS MANUFACTURING SCHEME

Why In News?

The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme (KISGMS) to establish India as a global hub for sports equipment manufacturing, innovation, and exports.

What Is Khelo India Sports Goods Manufacturing Scheme?

It is a central industrial promotion and manufacturing initiative, with a financial outlay of ₹1,856.67 crore for the period FY 2026–27 to FY 2033–34, under the Ministry of Youth Affairs and Sports. 

Core Objectives  

• Import Substitution: Reduce heavy reliance on imported sports gear and integrate domestic manufacturers into global supply chains.  

• Policy Alignment: Supports Make in India, Atmanirbhar Bharat, Khelo Bharat Niti 2025, and Viksit Bharat 2047.  

• Tapping the Global Market: According to the NITI Aayog report titled “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector”:

• Global sports goods market, including sports apparel, footwear, equipment, and accessories, was valued at approximately $700 billion in 2024 and is projected to cross $1 trillion by 2036. 

• Sports equipment segment alone accounts for approximately $140 billion, with global demand expected to reach around $283 billion by 2036.

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• India currently exports approximately $275 million worth of sports equipment annually, representing around 0.5% of the global export market.

• In India, the sector is largely MSME-driven, with nearly 90% of production undertaken by small and micro enterprises, highlighting its importance for employment generation and local economic development.

• India’s domestic sports goods market is estimated at approximately $2.5 billion, with sports equipment accounting for nearly $0.5 billion, indicating scope for expansion in both domestic production and exports.

Key Components 

• Sports Goods Manufacturing Zones (SGMZs):

• Developed via convergence with schemes like BHAVYA and NICDC Industrial Parks.

• Co-locates manufacturers, raw material suppliers, testing labs, design/prototyping centres, and ancillary units.  

• Anchor Investment & Production Incentives (₹1,130 crore):

• Provides direct investment support and turnover-linked incentives to attract major brands, scale up manufacturing lines, and increase domestic value addition. 

• MSME Modernization & Cluster Support:

• Over 90% of India's sports goods production (centered around hubs like Jalandhar in Punjab and Meerut in Uttar Pradesh) is driven by micro, small, and medium enterprises (MSMEs).

• The scheme upgrades shared infrastructure and establishes Common Facility Centres (CFCs). 

• International Product Certification (₹105 crore):

• Financial assistance to help domestic manufacturers obtain and renew quality standards from international bodies like FIFA, FIH (Hockey), BWF (Badminton), and World Athletics.   

• R&D & Centres of Excellence:

• Establishes specialized research centres (backed by the Anusandhan National Research Foundation - ANRF) to work on smart equipment, carbon composites, and advanced polymers.

• Offers seed grants of up to ₹20 lakh for eligible DPIIT-registered sports start-ups.  

• Skilling & Export Promotion:

• Workforce training aligned with the Ministry of Skill Development and Entrepreneurship (MSDE) and global outreach via the Export Promotion Mission (EPM).  

Significance 

• MSME & Employment Generation: Formalizes and scales a heavily traditional, labor-intensive sector capable of generating millions of direct and indirect jobs. 

• Grassroots Sports Ecosystem: Directly feeds affordable, high-grade, certified equipment into the overarching Khelo India Programme and Fit India missions.  

• Challenges Addressed: Tackles historical bottlenecks such as lack of high-end testing labs, high compliance/certification costs abroad, and fragmented MSME supply chains.  

What Are The Challenges In Domestic Sports Manufacturing?

International Federation Certification Hurdles: Domestic manufacturers encounter exorbitant overseas testing fees, prolonged bureaucratic delays, and non-transparent audit procedures enforced by international sports federations.

• Example: Sports Authority of India (SAI) Equipment Audit, documenting that Indian sports equipment manufacturers face high testing fees and multi-year compliance audits from federations like FIFA and World Athletics, restricting indigenous gear from Olympic and world championship procurement.

Raw Material Supply Chain Fragility: Domestic industrial base lacks commercial production capabilities for high-performance composites, specialized polymers, and tournament-grade natural timber.

• Example: NITI Aayog High-Tech Materials Assessment, showing that over 85% of aerospace-grade carbon fiber, high-density polyurethane foams, and tournament-quality willow wood are imported, exposing domestic fabricators to acute international supply chain vulnerabilities.

Capital Underserved MSME Clusters: Artisanal and small-scale manufacturing units in traditional clusters struggle to secure low-interest, long-tenure credit required for computerized numeric control (CNC) machinery.

• Example: RBI Priority Sector Lending Review on MSME Clusters, indicating that traditional sports manufacturing enterprises in Jalandhar and Meerut experience severe credit rationing for automated capital upgrades due to collateral demands.

Intellectual Property and Design Deficits: Office of the Controller General of Patents, Designs and Trade Marks Report, revealing that patent applications in sporting goods account for less than 0.5% of total Indian manufacturing filings, reflecting persistent under-investment in proprietary ergonomic technology.  

Way Forward  

Establishing Shared Common Facility Centers (CFCs): Deploy high-end testing, rapid 3D prototyping, and CNC tooling centers within MSME hubs to eliminate prohibitive capital expenditure barriers for small producers.

• Example: Micro and Small Enterprises Cluster Development Programme (MSE-CDP) Model, establishing state-funded shared prototyping and calibration labs in Jalandhar and Meerut to eliminate high initial capital investments for small fabricators.

Indigenous Synthesis of Advanced Materials: Transfer aerospace composite technologies developed by public defense and space laboratories to commercial sports equipment fabricators.

• Example: CSIR-National Aerospace Laboratories (CSIR-NAL) Technology Transfer, transferring indigenously formulated carbon-fiber composites and impact resins to domestic sports equipment producers at subsidized licensing rates.

Aggressive Global Export Branding and Pavilions: Institutionalize dedicated national pavilions at major international sports trade fairs to facilitate direct procurement linkages with global sporting leagues.

• Example: Export Promotion Mission Global Pavilion Model, subsidizing participation of certified Indian sports equipment manufacturers in global commercial expos across Europe and North America.

Enforcing Make In India Procurement Mandates: Mandate that national sporting bodies, Khelo India academies, and state sports departments prioritize federation-certified domestic gear.

• Example: Public Procurement (Preference to Make in India) Order, 2017 Implementation, mandating that state sports councils and university sports boards source at least 60% of their equipment from certified indigenous manufacturers.

Conclusion

The Khelo India Sports Goods Manufacturing Scheme (2026 to 2033-34), backed by a ₹1,856 Crore outlay, provides a strategic framework to boost domestic sports gear production. Addressing technological gaps and gaining international federation certifications will be key to establishing India as a leading global exporter.

Source: PIB