SYLLABUS

GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context: The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme, with an outlay of ₹1,856.67 crore for FY 2026–27 to FY 2033–34 to strengthen domestic manufacturing, attract investment and enhance India's global competitiveness in the sports goods sector. 

About the Khelo India Sports Goods Manufacturing Scheme 

• Objective: To develop India into a globally competitive hub for the design, development and manufacture of high-quality sports goods by promoting investment, technology adoption, research, skill development and exports.  

• Financial Outlay: The scheme has a total outlay of ₹1,856.67 crore for FY 2026–27 to FY 2033–34. It was announced in the Union Budget 2026–27.  

• Sports Goods Manufacturing Zones (SGMZs): Dedicated manufacturing zones will bring manufacturers, suppliers, testing facilities, design and prototyping centres, and ancillary enterprises together. 

• These zones will be developed through convergence with the BHAVYA Scheme and NICDC Industrial Parks. 
• The detailed proposal envisages four integrated zones, each covering more than 300 acres. 

• Investment and Production Support: A combined outlay of ₹1,130 crore is earmarked for two components: 

1. Anchor Investment Support: Provides 20% capital expenditure support to anchor investors investing at least ₹100 crore in designated manufacturing zones. 

2. Turnover Linked Support: Offers incentives of up to 15% to eligible manufacturers investing ₹10 crore or more, encouraging production growth and capacity expansion. 

• MSME and Cluster Development: Existing sports goods manufacturing clusters will receive support for upgrading common facilities and shared infrastructure through cost-sharing with States, helping smaller enterprises improve their manufacturing capabilities. 

• International Quality Certification: An allocation of ₹105 crore will support manufacturers in obtaining and renewing certifications from International Sports Federations. 

• Assistance will cover 70% of first-time certification costs and 50% of renewal costs. 

• Research activities will be encouraged through convergence with the Anusandhan National Research Foundation.  

• Start-up Support: DPIIT-registered sports start-ups will be eligible for grants of up to ₹20 lakh to support the development, testing, validation and commercialisation of new technologies, products and manufacturing processes. 

• Skill Development: Training programmes will be implemented in collaboration with the Ministry of Skill Development and Entrepreneurship and industry stakeholders to address the sector's evolving workforce requirements. 

• Export Promotion: An India Sports Expo, a Brand India campaign and other market-development initiatives, leveraging the Export Promotion Mission, will promote Indian sports goods and expand access to international markets.

Need and Significance of the Scheme 

• Strengthening Domestic Manufacturing: Sports Goods Manufacturing Zones and production incentives will expand manufacturing capacity, strengthen supplier networks and improve domestic value addition.  

• Reducing Import Dependence: Increased domestic production will reduce reliance on imported sports goods and strengthen India's supply-chain resilience.  

• Supporting MSMEs and Employment: Nearly 90% of sports goods production is undertaken by small and micro enterprises. Upgrading manufacturing clusters and shared facilities will improve their competitiveness and create employment opportunities.  

• Improving Quality and Innovation: International certification, Centres of Excellence, research collaboration and start-up grants of up to ₹20 lakh will promote quality standards, advanced technologies and innovative sports equipment.  

• Expanding Exports and Global Competitiveness: Branding, the India Sports Expo and export-promotion initiatives will strengthen international market access and support India's emergence as a global sports goods manufacturing hub.