The Union Cabinet has approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of Rs 1,856.67 crore for FY 2026-27 to FY 2033-34, a dedicated industrial policy for a sector where small and micro units make nearly 90% of output. The approval came on 28 October 2026, and the scheme was announced in the Union Budget 2026-27.

What the scheme builds

The aim is to make India a global hub for designing and manufacturing sports goods. Up to four Sports Goods Manufacturing Zones, each over 300 acres, will be developed in convergence with the BHAVYA scheme and NICDC industrial parks. The main clusters today are Jalandhar and Meerut.

Investment support totals Rs 1,130 crore: Anchor Investment Support gives 20% capital support for investments of Rs 100 crore or more, while Turnover Linked Support offers up to 15% for investments of Rs 10 crore or more. A further Rs 105 crore covers 70% of first-time and 50% of renewal costs for international federation certifications.

Eligibility

Eligibility for the startup leg is clear: DPIIT-registered sports startups will be eligible for grants of up to Rs 20 lakh. Research support runs through Centres of Excellence in premier institutions, with co-funding encouraged via the Anusandhan National Research Foundation, plus skilling with the Ministry of Skill Development and Entrepreneurship, an India Sports Expo and a Brand India campaign.

How to apply

How to apply for the Khelo India Sports Goods Manufacturing Scheme will follow guidelines to be notified after Cabinet approval; the approval reports name no application portal yet. Sports-goods founders should confirm DPIIT recognition now and track the official notification.

Why it matters for founders

Sports-goods founders rarely get a dedicated industrial policy, and this one pairs factory incentives with startup grants: if you build sports equipment, materials or testing tech, the Rs 20 lakh DPIIT startup grant and the new manufacturing zones are the two doors to watch first.