New Delhi: India’s sports goods manufacturing sector received a boost in the allocation for the Ministry of Youth and Sports Affairs in the union budget presented on Sunday with ₹500 crore set aside for the first time for the promotion of the industry.
“India has the potential to emerge as a global hub for high quality, affordable sports goods. I propose a dedicated initiative for sports goods that will promote manufacturing, research and innovation in equipment design as well as material sciences,” union finance minister Nirmala Sitharaman said while presenting the budget in parliament.
The initiative is expected to promote domestic manufacturing, encourage innovation and strengthen India’s presence in the global sports supply chains.
The move was welcomed by sports goods manufacturers.
“This is the first time that the government has come out with some kind of suggestions or subsidies or incentives for the sports manufacturing industry for testing, subsidies for the fees which we pay for approvals, etc. It’s a very positive development for the industry,” Rakesh Kohli, chairman of STAG International, a global manufacturer of table tennis equipment and sports infrastructure, told HT.
“They are also talking about setting up clusters for sporting goods manufacturing. So, all this is going to be quite helpful.
“A major change for the industry is that it comes under the sports ministry from this year. Earlier, sporting goods manufacturing was not represented by any ministry. Now, we are having a lot of discussion with the ministry on how to build Brand India through Indian sports brands. That is where we wanted the support. There are quite a few Indian brands which are doing well internationally. The sports ministry has put forward a lot of proposals to the government after discussion with manufacturers,” he said.
The finance minister also announced the launch of a Khelo India Mission with focus on integrated talent development pathways through training centres at foundational, intermediate and elite level. Union sports minister Mansukh Mandaviya had spoken about opening dedicated state-of-the-art training centres by the upgrading of existing facilities that can help prepare Indian athletes for the 2036 Olympics.
In the crucial year of Asian Games and the Commonwealth Games, the overall budget allocation for the Ministry of Sports and Youth Affairs has been set at ₹4,479.88 crore — an increase of ₹1,133.34 crore over the revised 2025–26 allocation of ₹3,346.54 crore.
However, assistance to National Sports Federations (NSFs) has seen only a marginal rise. An allocation of ₹425 crore has been earmarked for NSFs in 2026–27, up from ₹400 crore in the previous fiscal. These funds are utilised by NSFs to send teams abroad for training and participation in international tournaments, host international events in India, conduct nationals and buy sports equipment.
The allocation for Sports Authority of India (SAI) which runs various regional training centres and nurtures talent, organises national coaching camps and engages the services of foreign coaches, has been raised from ₹880 crore to ₹917.38 crore.
NADA budget cut
However, there has been a cut in the allocation for the National Anti-Doping Agency (NADA), from ₹24.30 crore to ₹20.30 crore, and for the National Dope Testing Laboratory (NDTL), from ₹28.55 crore to ₹23 crore.
This is a cause for concern at a time when India is grappling with the doping menace. According to the latest World Anti-Doping Agency (WADA) report, India topped the global doping charts with 260 Adverse Analytical Findings (AAF) in 2024. With the Asian Games and Commonwealth Games scheduled this year, NADA will be required to intensify its efforts against dope cheats.
The Khelo India Scheme was allocated ₹924.35 crore. A sum of ₹1,000 crore was earmarked under the scheme in the previous budget (2025-26) and was later revised to ₹700 crore.
A sum of ₹50 crore has been allocated as assistance for Commonwealth Games, up from ₹28.05 crore.
The government has also increased the overall incentive for sportspersons from ₹28 crore to ₹40 crore this year. The scheme is to award cash prizes to meritorious sportspersons and their coaches.
Sports goods sector
The big boost to the sports goods industry is a big first step. India has less than 1% of the international market in the sector but it has huge potential.
“What the government is aiming at right now is about ₹2,500 crore of exports. With the help of the government, we are trying to get it to 15%, which means that it’s going to be a huge market,” said Kohli.
“The budget seems quite encouraging for the sports industry with the allocation of ₹500 crore for helping in research and development and supporting the industry with credit facilities. Even the focus on infrastructure is going to be quite crucial. There is also a lot of support for MSMEs which is going to help the sports industry,” said Paras Anand, CEO of Sanspareils Greenlands (SG) which manufactures cricket equipment.
“The interesting thing would be how soon it can reach the level where the industry benefits, and that will be most important,” he added.
(With inputs from Shantanu Srivastava)
