Cabinet approves Khelo India Sports Goods Manufacturing Scheme with outlay of over Rs 1800 crore
The Khelo India Sports Goods Manufacturing Scheme has been approved by the Union Cabinet to develop the sports goods industry. The initiative includes creating dedicated Sports Goods Manufacturing Zones to enhance production capabilities. Significant financial support is allocated to encourage innovation and research in sports equipment manufacturing. The scheme aims to generate new employment opportunities and reduce import dependency in this sector.
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Context
The Union Cabinet has approved the with an outlay of Rs 1,856.67 crore for 2026-2033. Announced in the Union Budget 2026-27, the scheme aims to build a globally competitive sports goods industry by establishing dedicated manufacturing zones, supporting MSMEs, and incentivizing production, aligning with the vision of an (self-reliant India).
UPSC Perspectives
Economic
This scheme is a strategic move to boost domestic manufacturing and reduce import dependence, a core tenet of the initiative. The introduction of Turnover Linked Support (an incentive structure rewarding higher production) with an allocation of Rs 1,130 crore functions similarly to (PLI) schemes. By aiming to enhance domestic value addition, the policy seeks to integrate Indian manufacturers into global supply chains. A critical aspect is the focus on cluster-based manufacturing through (SGMZs). These zones create agglomeration economies (benefits gained by firms locating near each other) by co-locating manufacturers, suppliers, and testing facilities, thereby reducing logistical costs and improving efficiency. The convergence with existing infrastructure like demonstrates an integrated approach to industrial policy.
Governance
The policy highlights a targeted approach to industrial promotion, explicitly recognizing the vital role of Micro, Small and Medium Enterprises () in the sports goods sector. By providing assistance for upgrading clusters and shared infrastructure, the government addresses the typical capacity constraints faced by smaller firms. A significant governance intervention is the provision of Rs 105 crore to support manufacturers in obtaining certifications from International Sports Federations. This tackles a major non-tariff barrier for Indian exports, ensuring domestic products meet global quality standards. The scheme's convergence with the (ANRF) reflects a coordinated inter-ministerial strategy, linking industrial policy with scientific research to foster innovation in materials and advanced manufacturing.
Social
While primarily an industrial policy, the has substantial social implications, particularly regarding employment generation and youth empowerment. The establishment of and the expansion of the manufacturing base are expected to create a multiplier effect on job creation, both directly in manufacturing and indirectly in ancillary sectors. This aligns with the demographic dividend imperative, providing employment opportunities for the Yuva Shakti (youth power). Furthermore, by supporting the production of high-quality, indigenous sports equipment, the scheme complements broader national sporting initiatives, potentially making sports more accessible and affordable, thereby contributing to a healthier and more active population.