The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, October 28, approved the Khelo India Sports Goods Manufacturing Scheme with a total outlay of Rs 1,856.67 crore for the period 2026 to 2033-34, IANS reported, citing the Cabinet statement.

Source: IANS

Announced in the Union Budget 2026-27, the scheme aims to strengthen India's sports goods manufacturing base through targeted support for investment, technology adoption, research and innovation, skill development, quality certification and market development, and to strengthen India's position in global supply chains, according to the government release quoted by IANS and The Hindu BusinessLine.

Source: The Hindu BusinessLine

The scheme envisages dedicated Sports Goods Manufacturing Zones to promote cluster-based manufacturing, co-locating manufacturers, suppliers, testing facilities, design and prototyping centres and ancillary enterprises. The zones will be developed through convergence with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks, the Cabinet statement said.

Rs 1,856.67 croreTotal outlay, 2026 to 2033-34
4Integrated manufacturing zones planned
20%Capex support for anchor investors of Rs 100 crore or more

Briefing the media after the Cabinet meeting, Union Information and Broadcasting Minister Ashwini Vaishnaw said the country's three primary sports goods clusters are Meerut in Uttar Pradesh, the Jalandhar-Ludhiana region in Punjab, and Jammu, and that most manufacturing in the sector is in the MSME sector, Upstox reported. He said the scheme aims to help these enterprises scale up, upgrade technology, use superior materials and streamline certification, which would give Indian manufacturers better access to global markets.

Under the manufacturing component, the government will support four integrated sports goods manufacturing zones, each spread over more than 300 acres. Anchor investors committing at least Rs 100 crore will be eligible for capital expenditure support of 20%, while manufacturers investing Rs 10 crore or more can receive turnover-linked incentives of up to 15%, Upstox reported. Existing clusters will also get support to upgrade common facilities through cost-sharing with state governments.

Sports Minister Mansukh Mandaviya said the scheme will empower the youth through new employment opportunities and drive investments. "India Plays, India Manufactures! Under the leadership of Prime Minister Shri @narendramodi ji, the Union Cabinet today approved the 'Khelo India Sports Goods Manufacturing Scheme' with an outlay of Rs 1,856.67 crore," Mandaviya posted, as quoted by The Hindu BusinessLine.

The government said the scheme is aligned with the Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat, and is expected to attract investment, create employment, strengthen domestic manufacturing capabilities and enhance the global competitiveness of Indian sports goods.