Khelo India Sports Goods Manufacturing Scheme 2026: Benefits, Eligibility and Complete Guide
Khelo India Sports Goods Manufacturing Scheme 2026: Benefits, Eligibility and Complete Guide
India makes most of the world's cricket bats, yet it imports close to two-thirds of the sports equipment it uses. Its share of global sports equipment exports is only about 0.5%. On 28 October 2026, the Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of ₹1,856.67 crore to change that.
If you run a sports goods unit in Meerut, Jalandhar or Ludhiana, or you are planning to start one, this scheme matters. It offers capital support for large investors, turnover-linked incentives for growing manufacturers, help with international certification, and upgrades for existing clusters.
This guide explains what the scheme offers, who is likely to qualify, how it works, the documents to prepare, common mistakes, and what it realistically means for small units.
Scheme at a Glance
| Feature | Details |
| Scheme name | Khelo India Sports Goods Manufacturing Scheme |
| Approved by | Union Cabinet, 28 October 2026 |
| Announced in | Union Budget 2026-27 (₹500 crore first-year allocation) |
| Total outlay | ₹1,856.67 crore |
| Scheme period | 2026-27 to 2033-34 (8 years) |
| Investment + turnover support | ₹1,130 crore combined |
| Anchor investment support | 20% of capex for investors putting ₹100 crore+ into a manufacturing zone (reported) |
| Turnover-linked support | Up to 15% for manufacturers investing ₹10 crore+ (reported) |
| International certification | ₹105 crore |
| Start-up support | Grants up to ₹20 lakh (reported) |
| Manufacturing zones | About four Sports Goods Manufacturing Zones of 300+ acres each (locations awaited) |
| Application status | Guidelines and portal awaited |
What is the Khelo India Sports Goods Manufacturing Scheme?
The Khelo India Sports Goods Manufacturing Scheme is a central government programme to build a globally competitive sports goods industry in India. It supports investment, production, research, skills, quality certification and export branding for sports equipment manufacturers.
Despite the "Khelo India" name, this is not an athlete or sports infrastructure scheme. It is an industrial scheme for manufacturers. It sits alongside the existing Khelo India programme, the Khelo Bharat Niti 2025, Make in India and Atmanirbhar Bharat.
Why the scheme exists
NITI Aayog's March 2026 report found that India exported only about $275 million of sports equipment in 2024, against a global export market of around $52 billion. The global sports goods market is valued at about $700 billion. The report blamed a lack of scale, old clusters short of land, distance from seaports and weak certification access.
The report projected that India's sports equipment exports could reach $8.1 billion by 2036, capturing roughly 11% of global exports, if these gaps are fixed. This scheme is the government's first dedicated funding response.
Who it targets
- Large manufacturers, global brands and retail chains willing to anchor new manufacturing zones
- Mid-size manufacturers investing ₹10 crore or more
- Existing MSME clusters such as Meerut (Uttar Pradesh) and Jalandhar (Punjab)
- Sports-tech and equipment design start-ups
- Exporters seeking international federation certification
Most sports equipment falls under HSN 9506. Check your product codes using the StartupFlora HSN Code Finder.
Why is the Sports Goods Manufacturing Scheme Important?
Import dependence
India imports nearly 63% of the sports equipment it uses, according to NITI Aayog. Gym equipment, fitness machines, rackets and advanced protective gear are largely imported. Local manufacturing at scale reduces this gap and keeps value inside India.
MSME livelihoods
Small and micro firms make nearly 90% of India's sports goods. Jalandhar and Meerut alone have over 4,000 micro enterprises and nearly 20,000 household units. Cluster upgrades and certification support can lift productivity and incomes across these communities.
Export opportunity
Global brands are diversifying sourcing away from single-country dependence. India already has proven strength in cricket equipment, balls and hand-made goods. Certified quality and better branding can open doors to European, US and Middle East buyers.
Major sporting events
India is set to host the 2030 Commonwealth Games in Ahmedabad and is pursuing larger events. Demand for internationally certified equipment will rise, and domestic suppliers who are certified early will be in a strong position.
Sports Goods Manufacturing Scheme Eligibility (Expected)
Detailed eligibility will come with the operational guidelines. The criteria below are based on the Cabinet release and PIB's backgrounder. Update once the guidelines are notified.
Anchor Investors
Companies investing at least ₹100 crore in a Sports Goods Manufacturing Zone may get 20% of their capital spending back. These are expected to be large manufacturers, brands or retail chains.
Mid-size Manufacturers
Manufacturers investing ₹10 crore or more are expected to qualify for turnover-linked incentives of up to 15%. Small enterprises under the MSME definition can reach this threshold.
Cluster Units
Micro and small units in existing clusters are expected to benefit through common facilities and shared infrastructure, funded by cost-sharing between the Centre and states.
Start-ups
Sports goods and sports-tech start-ups working on design, materials or innovation are expected to be eligible for grants of up to ₹20 lakh, as per the backgrounder.
Certified Products
Support for international certification is linked to manufacturers seeking or renewing approvals from International Sports Federations, such as those governing football, hockey, cricket or athletics.
Legal Registration
Applicants will likely need to be registered Indian entities with GST, and MSMEs with Udyam registration. Use the NIC Code Finder to confirm your activity code.
Who qualifies for what?
| Your business | Investment level | Likely benefit |
| Household / micro unit (≤ ₹2.5 crore plant & machinery) | Low | Cluster common facilities, skills, certification support |
| Small enterprise (≤ ₹25 crore plant & machinery) | ₹10 crore+ possible | Turnover-linked support, certification |
| Medium / large manufacturer | ₹10–100 crore | Turnover-linked support, certification, export branding |
| Anchor investor in a zone | ₹100 crore+ | 20% capex support + zone infrastructure |
| Start-up | Early stage | Grant up to ₹20 lakh, CoE linkages |
How Does the Sports Goods Manufacturing Scheme Work?
The scheme combines six support streams. Here's how a manufacturer would typically move through it.
Choose Route
Decide whether you'll invest in a new Sports Goods Manufacturing Zone, expand an existing plant above ₹10 crore, or upgrade within your cluster. Each route carries different support and thresholds.
Prepare DPR
Build a Detailed Project Report covering product mix, capacity, investment, export plan, certification targets and jobs. The DPR will drive both the scheme application and your bank loan.
Zone Allotment
Anchor investors will get land in zones developed with existing industrial parks under the BHAVYA scheme and NICDC. Zones are planned to bring manufacturers, suppliers, testing and design centres together.
Invest and Produce
Complete plant and machinery investment, start production and grow turnover. Turnover-linked support is expected to be paid on eligible sales, so accurate GST records matter.
Get Certified
Apply for International Sports Federation certification or renewal. The ₹105 crore component helps cover these costs, which are often too high for smaller exporters to bear alone.
Claim and Export
File periodic claims and use "Brand India" outreach, delivered with the Export Promotion Mission, to reach global buyers through fairs, buyer meets and market development.
Documents Required (Expected)
The official checklist is awaited. These documents are typically required for central manufacturing incentive schemes. Keep them ready.
Entity Proof
Certificate of incorporation or partnership deed, PAN, GST registration, Udyam certificate for MSMEs and a board resolution authorising the application.
Project Report
A DPR with product categories, installed capacity, capex breakup, export targets, certification plan and employment projections, matching the investment threshold you are applying under.
Investment Proof
Chartered accountant certificate of capital expenditure, invoices for plant and machinery, and term loan sanction or equity infusion records.
Turnover Records
Audited financial statements, GST returns and a CA-certified turnover statement to support turnover-linked incentive claims.
Certification Papers
Existing quality certificates (ISO 9001, BIS where applicable) and application or approval letters from International Sports Federations.
Export Records
IEC (Importer Exporter Code), shipping bills, export invoices and buyer contracts, useful for export branding and market development support.
Benefits of the Khelo India Sports Goods Manufacturing Scheme
Capex Support
Anchor investors may recover 20% of capital spending. On a ₹150 crore zone investment, that is about ₹30 crore back, which significantly shortens payback for large factories making fitness equipment, balls or protective gear.
Turnover Incentive
Turnover-linked support of up to 15% rewards manufacturers who actually grow sales. It pushes units to scale production rather than just build capacity, which is exactly where Indian sports goods have lagged.
Certification Help
International federation certification can cost several lakh rupees per product line and take months. The ₹105 crore component lowers this barrier, letting Indian makers supply equipment for official competitions and premium export markets.
Cluster Upgrades
Common facilities such as testing labs, design centres, raw material banks and shared machinery help micro units in Meerut and Jalandhar improve quality without each buying expensive equipment.
Research and Skills
Centres of Excellence at premier institutions, in collaboration with the Anusandhan National Research Foundation, will work on materials, protective gear and advanced manufacturing. Skills programmes help supply trained workers for new and upgraded plants.
Common Mistakes to Avoid
Assuming Universal Eligibility
The largest money (₹1,130 crore) is for units investing ₹10 crore or more. Micro units should not plan budgets around turnover incentives they may not qualify for. Focus on cluster facilities and certification support instead.
Skipping Certification
Without International Sports Federation approval, products cannot be used in official competitions and struggle in premium export markets. Plan certification early — it is often the real bottleneck.
Weak Records
Turnover-linked claims will rely on clean GST filings and audited accounts. Cash sales and informal records common in older clusters can block claims. Formalise accounts now.
Waiting for the Portal
Guidelines are not out yet, but DPRs, certification applications and land discussions take months. Prepare now so you're ready when the window opens. Avoid agents promising guaranteed approval.
Ignoring Other Schemes
This scheme is one tool. MSMEs can also combine credit guarantees, state industrial policies (Uttar Pradesh and Punjab both support their sports clusters), RoDTEP export benefits and EPCG. Plan the full stack.
Costs, Fees and Charges
No application fee has been announced. Your real costs are in project setup and compliance:
| Cost head | Note |
| Land / factory | Zone land rates will be set by the developing agency; cluster units use existing premises |
| Plant & machinery | Moulding, stitching, CNC woodworking, composite curing, testing equipment — varies widely by product |
| Investment thresholds | ₹10 crore+ for turnover support; ₹100 crore+ for anchor support |
| International certification | Federation testing and licence fees per product, plus renewal fees |
| Compliance | GST, Udyam, factory licence, pollution consent, BIS (where applicable), IEC for exports |
| Penalties | Expect recovery of incentives with interest for false claims or not meeting commitments (standard in central schemes; confirm in guidelines) |
Not sure which central and state benefits you can combine? A StartupFlora Funding Audit maps them to your project.
Practical Examples and Use Cases
Illustrative examples to explain how the scheme could apply. Final benefits depend on the guidelines.
Example 1: Jalandhar ball exporter scaling up
A small enterprise in Jalandhar makes footballs and volleyballs for export, with ₹6 crore in plant and machinery. It plans a ₹5 crore expansion into thermo-bonded match balls, taking total investment above ₹10 crore. It could then qualify for turnover-linked support and use the ₹105 crore component to get federation approval for its match ball — opening premium tender and club markets.
Example 2: Meerut micro cricket bat unit
A family workshop in Meerut makes English willow bats with under ₹1 crore of machinery. It won't meet the ₹10 crore threshold. Instead, it benefits from a cluster common facility offering seasoning, grading and testing equipment, plus skills training. It can also stack state cluster benefits and MSME credit schemes.
Example 3: Anchor investor in a zone
A fitness equipment brand plans a ₹200 crore factory for treadmills and strength machines in a new manufacturing zone near a port. At 20% anchor support, it could recover about ₹40 crore of capex, plus shared testing and design facilities in the zone.
Example 4: Sports-tech start-up
A start-up developing lightweight composite hockey sticks applies for a grant of up to ₹20 lakh to build prototypes and works with a Centre of Excellence on material testing.
Comparison: Khelo India Sports Goods Scheme vs PLI Scheme
Many people still search for a "PLI scheme for sports goods". There is no PLI for this sector. The approved scheme blends production incentives with ecosystem support.
| Aspect | Khelo India Sports Goods Manufacturing Scheme | Typical PLI scheme |
| Status | Cabinet-approved 28 Oct 2026; guidelines awaited | Not applicable to sports goods |
| Outlay | ₹1,856.67 crore | Usually several thousand crore per sector |
| Duration | 2026-27 to 2033-34 | Usually 5–6 years |
| Production incentive | Up to 15% turnover-linked support (₹10 crore+ investment) | % of incremental sales over a base year |
| Capital support | 20% capex for anchor investors in zones | Generally not offered |
| Ecosystem support | Zones, cluster upgrades, CoEs, skills, certification, branding | Minimal |
| Advantage | Helps both large investors and clusters | Strong push for scale |
| Disadvantage | Highest benefits need large investments | Hard for MSMEs without base-year sales |
| Best for | Mid-size and large manufacturers; clusters via common facilities | Large established players |
Latest Updates on the Sports Goods Manufacturing Scheme
| Date | Update |
| 1 February 2026 | Union Budget 2026-27 announces a dedicated sports goods initiative with ₹500 crore |
| 19 March 2026 | NITI Aayog releases its report on sports equipment export potential ($8.1 bn by 2036 target) |
| 28 October 2026 | Union Cabinet approves the Khelo India Sports Goods Manufacturing Scheme with ₹1,856.67 crore |
| Next | Operational guidelines, zone locations and application portal awaited |
Track new central and state schemes on the StartupFlora Government Schemes Dashboard.
Frequently Asked Questions
What is the Khelo India Sports Goods Manufacturing Scheme?
It is a ₹1,856.67 crore central scheme approved on 28 October 2026 to boost sports goods manufacturing, research, certification and exports in India from 2026-27 to 2033-34.
What is the total outlay of the sports goods scheme?
The total outlay is ₹1,856.67 crore. Of this, ₹1,130 crore is for anchor investment and turnover-linked support, and ₹105 crore is for international certification.
Who is eligible for the sports goods manufacturing scheme?
As reported from PIB's backgrounder, anchor investors need ₹100 crore+ in a manufacturing zone, and turnover support needs ₹10 crore+ investment. Cluster units and start-ups get separate support. Final rules await notification.
What is anchor investment support?
Anchor investors putting at least ₹100 crore into a Sports Goods Manufacturing Zone are expected to get 20% of their capital spending as support.
What is turnover-linked support in the sports goods scheme?
Manufacturers investing ₹10 crore or more can get turnover-linked incentives of up to 15%. The exact base for the percentage will be clarified in the guidelines.
Can micro units in Meerut and Jalandhar benefit?
Yes, mainly through cluster upgrades, common facilities, skills and certification support. Most micro units won't meet the ₹10 crore threshold for turnover incentives.
Is there a PLI scheme for sports goods?
No. The government chose the Khelo India Sports Goods Manufacturing Scheme, which combines turnover-linked support with capex support and ecosystem building.
How do I apply for the sports goods manufacturing scheme?
The portal isn't live yet. Applications will open after guidelines are notified. Prepare your DPR, financials, GST records and certification plan now.
What are Sports Goods Manufacturing Zones?
They are planned integrated clusters — about four, each over 300 acres — combining factories, suppliers, testing, design and prototyping centres, developed with BHAVYA and NICDC industrial parks.
Is the start-up grant part of the scheme?
Yes. PIB's backgrounder mentions grants of up to ₹20 lakh for sports goods start-ups, along with research support through Centres of Excellence.
Conclusion
The Khelo India Sports Goods Manufacturing Scheme is India's first dedicated industrial scheme for sports goods. With ₹1,856.67 crore, 20% capex support for anchor investors, up to 15% turnover-linked incentives, ₹105 crore for certification and planned manufacturing zones, it targets the scale and quality gaps that kept India's export share at 0.5%.
The key takeaway: the biggest benefits favour units investing ₹10 crore or more, but small and micro manufacturers can still gain through cluster facilities, certification support and by stacking other MSME and state schemes.
Guidelines are expected soon. If you're planning an expansion, a zone investment or want to know what your unit qualifies for, talk to the StartupFlora team to prepare your DPR and application in advance.