India’s Cabinet approved the Khelo India Sports Goods Manufacturing Scheme, an eight-year ₹1,856.67 crore (₹18.57 billion) program, on Oct. 28, with the government aiming to lift domestic output and exports and reduce import reliance.
NITI Aayog, the government’s policy think tank, estimated in a March 2026 report that India’s sports-equipment exports reached $275 million in 2024, equal to 0.5% of global shipments. It put imports’ share of domestic consumption at nearly 63% and said micro and small businesses account for almost 90% of local output.
The government has earmarked ₹1,130 crore for anchor investment and turnover-linked support. Another ₹105 crore will help manufacturers obtain or renew certifications from international sports federations. Manufacturers, including micro, small and medium enterprises (MSMEs), are among the intended beneficiaries; the scheme also provides for research, cluster upgrades, workforce training and export-market development.
Proposed manufacturing zones would draw on infrastructure under the BHAVYA Scheme and at National Industrial Corridor Development Corporation parks. The government plans to locate production sites near suppliers, testing services and design and prototyping facilities. The Cabinet announcement did not name locations or set out application rules or an implementation timetable.
The 2026-27 Union Budget separately carries a ₹500 crore annual estimate under “Promotion of Sports Goods Manufacturing.” That budget line is distinct from the scheme’s eight-year outlay, which runs from fiscal 2026-27 through 2033-34.
The Cabinet also approved ₹10,000 crore for container manufacturing and ₹7,395 crore for rural governance in the same package as the allowance decision.
NITI Aayog says Indian producers face barriers in sourcing specialized materials, adopting technology, scaling output and meeting international testing and certification requirements. The report points to Vietnam, where sports-equipment exports grew more than threefold over the previous decade, alongside ecosystem development and partnerships with global brands.
