Cabinet clears Rs 1,857 crore scheme for sports goods manufacturing zones
By Aditi KulkarniEducation Writer, Peepals Bharat
Representative image: pixel2013 / Pixabay
The Cabinet approved the Rs 1,856.67 crore Khelo India Sports Goods Manufacturing Scheme on October 28, 2026, with four zones and up to 15% turnover-linked incentives.
What Happened
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Khelo India Sports Goods Manufacturing Scheme on Wednesday, October 28, 2026, with an outlay of Rs 1,856.67 crore for 2026 to 2033-34. The scheme aims to make India a competitive hub for making sports goods by setting up four dedicated Sports Goods Manufacturing Zones, offering incentives linked to manufacturers' turnover, and paying part of the cost of international product certification. Union Minister Ashwini Vaishnaw briefed reporters on the decision.
Key Facts
- Scheme: Khelo India Sports Goods Manufacturing Scheme, first announced in the Union Budget 2026-27.
- Outlay: Rs 1,856.67 crore for 2026 to 2033-34.
- Zones: four integrated Sports Goods Manufacturing Zones (SGMZs), each spread over about 300 acres, for cluster-based manufacturing.
- Turnover incentive: manufacturers investing Rs 10 crore or more would be eligible for turnover-linked incentives of up to 15%, according to reports of the briefing.
- Certification support: 70% of the cost of first-time international product certification and 50% for renewals.
- Split: about Rs 1,130 crore for investment and production assistance and Rs 105 crore for international accreditation support, according to one summary of the decision.
- Existing clusters: assistance to upgrade shared infrastructure and facilities in existing sports goods manufacturing clusters.
- Aims: attract domestic and foreign investment, cut import dependence, and raise exports and jobs.
Why It Matters
Sports goods range from cricket bats, footballs and shuttlecocks to gym equipment, sportswear and protective gear. In India, much of this is made by small and medium firms grouped in a few manufacturing clusters, while higher-end equipment is often imported. The scheme is designed to change that by helping firms grow, meet international quality standards and sell abroad.
Two parts of the scheme matter most for small manufacturers and new entrepreneurs. The first is certification support. To sell sports equipment in many foreign markets or to be used in international competition, products often have to be tested and certified by recognised bodies, which is costly for a small firm. Paying 70% of the first certification and half of renewals lowers one of the main barriers to export. The second is the upgrade of shared facilities in existing clusters: common testing labs, design centres or other infrastructure that individual small units could not afford on their own.
The four manufacturing zones and the turnover-linked incentives are aimed at larger investors. A firm that invests Rs 10 crore or more and grows its sales could receive incentives of up to 15% linked to turnover. "Turnover-linked" means the payment depends on how much the firm actually sells, so the incentive rewards output rather than simply spending. Vaishnaw described the scheme as having two parts, incentives to support manufacturing and interventions to build the wider ecosystem.
| Element | What it offers |
|---|---|
| Outlay | Rs 1,856.67 crore, 2026 to 2033-34 |
| Manufacturing zones | 4 zones, about 300 acres each |
| Turnover incentive | up to 15%, for investment of Rs 10 crore or more |
| First certification | 70% of cost covered |
| Certification renewal | 50% of cost covered |
For founders and small manufacturers outside the big cities, the practical next step is to watch for the scheme's detailed guidelines, which will set out eligibility, how to apply and where the four zones will be. One report estimates that the scheme could draw around Rs 6,000 crore of investment into the sector over eight years; that is a projection, not a commitment.
Impact
Short-term: The ministries concerned will issue operational guidelines and begin choosing locations for the four zones. Existing manufacturers can prepare for certification support and cluster upgrades.
Long-term: If the zones and incentives work as planned, India could make more high-value sports goods at home, import less and export more, creating jobs in manufacturing clusters and around the new zones.
Who is affected: Sports goods manufacturers, especially small and medium firms in existing clusters; entrepreneurs planning new units; workers in the sector; exporters; and athletes and buyers who use the equipment.
Key Takeaway
The Cabinet approved the Rs 1,856.67 crore Khelo India Sports Goods Manufacturing Scheme on October 28, 2026, with four manufacturing zones, turnover-linked incentives of up to 15% and support for 70% of first-time certification costs.
Questions and Answers
What is the Khelo India Sports Goods Manufacturing Scheme?
It is a central scheme approved by the Union Cabinet on October 28, 2026, with an outlay of Rs 1,856.67 crore for 2026 to 2033-34, to make India a competitive hub for sports goods manufacturing through four manufacturing zones, incentives and certification support.
What incentives does the sports goods scheme offer?
According to reports of the Cabinet briefing, manufacturers investing Rs 10 crore or more can get turnover-linked incentives of up to 15%, and the scheme covers 70% of the cost of first-time international product certification and 50% of renewals.
How many Sports Goods Manufacturing Zones will be set up?
Four integrated Sports Goods Manufacturing Zones, each spread over about 300 acres, are planned for cluster-based manufacturing.
How can small sports goods makers benefit?
Small manufacturers can gain from the certification support and from upgrades to shared infrastructure in existing clusters. Details on eligibility and how to apply will come in the scheme's operational guidelines.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Aditi Kulkarni, Education WriterCovers Education and more for Peepals Bharat. All stories by Aditi Kulkarni
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Aditi Kulkarni is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
