Khelo India Sports Goods Manufacturing Scheme: What ₹1,856.67 Crore Offers MSMEs, Clusters and Start-ups

The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme, with a total outlay of ₹1,856.67 crore for the period 2026 to 2033-34. It was first announced in the Union Budget 2026-27.

Most of the coverage has focused on the big-ticket part: bringing leading domestic and global brands to build factories in India. But the official cabinet release also has a separate track for smaller players: upgrades for existing manufacturing clusters, help with international certification, and dedicated support for start-ups. If you make, design or supply sports goods, that is the part worth reading closely.

What the scheme is trying to do

According to the cabinet release, the scheme aims to promote investment, manufacturing, innovation and exports, and to strengthen India's position in the global sports goods sector. It plans to do this through targeted support for:

• investment and technology adoption
• research and innovation
• skill development
• quality certification
• market development

The release says the scheme is aligned with Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat, and will complement Khelo India and Fit India.

The manufacturing zones

The scheme envisages dedicated Sports Goods Manufacturing Zones (SGMZs). The idea is cluster-based manufacturing: manufacturers, suppliers, testing facilities, design and prototyping centres and ancillary enterprises located in one place.

These zones will not be built from scratch. The release says they will be developed through convergence with existing industrial infrastructure under the BHAVYA Scheme and NICDC Industrial Parks.

What has not been announced: how many zones there will be, or where. The Policy Edge also notes that the scheme does not yet specify the number or location of zones.

Support for anchor brands and higher output

Two components are aimed at scale:

• Anchor Investment Support will encourage leading domestic and global manufacturers, brands and retail chains to set up manufacturing facilities inside the designated zones, and to build supplier and ancillary ecosystems around them.
• Turnover Linked Support will incentivise higher production, capacity expansion and sustained manufacturing growth.

Together these two components have a combined outlay of ₹1,130 crore, per the release. The incentive rates and the turnover levels that would qualify have not been announced.

For a smaller supplier, the anchor component matters indirectly. The release explicitly talks about fostering supplier and ancillary ecosystems, so a unit that can supply components, materials or finishing work to an anchor manufacturer is part of the design, even if it never receives the anchor incentive itself.

What is in it for MSMEs and existing clusters

The release says the scheme "places emphasis" on strengthening existing manufacturing clusters and supporting the growth of smaller enterprises. Specifically:

• Cluster upgrades. Assistance will be provided to upgrade existing sports goods manufacturing clusters, including common facilities and shared infrastructure.
• International certification. Manufacturers will get support to obtain and renew certifications from International Sports Federations, with an outlay of ₹105 crore.

The certification piece is the most concrete benefit for a small manufacturer. Certification from a sporting federation is often what decides whether a product can be sold for competitive use. The release does not say what share of the cost will be covered or how a manufacturer applies.

The cluster support is also practical: shared testing or processing facilities that a single small unit could not afford alone. Which clusters will be covered has not been announced.

Support for start-ups and research

The release includes dedicated support for start-ups, in alignment with the Startup India initiative. It is meant to help with the development, testing, validation and commercialisation of new technologies, processes and products in sports goods manufacturing.

On research, the scheme will support Centres of Excellence in premier educational and research institutions, working on sports equipment, material sciences, protective gear and advanced manufacturing technologies. Research and development will also be encouraged through convergence with the Anusandhan National Research Foundation.

If you are building a new material, protective equipment, or a manufacturing process for sports goods, these are the two routes to watch. Neither the form of start-up support (grant, incubation, testing access or something else) nor the selection process has been announced.

Skills and exports

• Skill development will be run in collaboration with the Ministry of Skill Development and Entrepreneurship and industry stakeholders.
• The scheme will push Indian sports goods in international markets through branding, outreach and market development, leveraging the Export Promotion Mission.

What outlets are adding

Moneycontrol reports that the government expects the scheme to attract investments of around ₹6,800 crore. That figure is not in the official release text we reviewed, so treat it as an expectation, not a commitment. Moneycontrol also rounds the outlay to ₹1,857 crore; the release gives ₹1,856.67 crore.

In a post on 28 October, Prime Minister Narendra Modi listed MSME support, research, innovation, skill development and a focus on quality among the scheme's key features, as reported by Moneycontrol.

What has not been announced

The release does not state:

• application dates
• an application portal
• eligibility thresholds
• incentive rates
• the number or location of the zones

Until guidelines are published, there is nothing to apply for.

What this means for you

• You run a unit in an existing sports goods cluster? Talk to your cluster association now about common facilities you would want upgraded. Cluster upgrades are named in the release, and a cluster that has its needs written down will be ready when guidelines arrive.
• You sell, or want to sell, to federation-regulated sport? List which International Sports Federation certifications your products need and what renewing them costs you. That is the ₹105 crore component.
• You are a start-up in sports equipment or materials? Make sure your Startup India recognition is in place, since the start-up support is aligned with that initiative, and keep your testing and validation data organised.
• You could supply an anchor manufacturer? Watch for where the zones are announced. The scheme is built around suppliers sitting next to large manufacturers.
• Don't plan around numbers that aren't out yet. Incentive rates, eligibility and dates are all still to come.

Sources: Cabinet release on the Khelo India Sports Goods Manufacturing Scheme (via NarendraModi.in); Moneycontrol; The Policy Edge; BigInfo.

Cover photo: Kristin O Karlsen on Unsplash