Cabinet Approves ₹1,856 Crore Sports Goods Manufacturing Scheme to Boost India’s Production Capacity

The Union Cabinet has approved a ₹1,856 crore sports goods manufacturing scheme over eight years to develop manufacturing hubs, support businesses and attract investment across India.

Union Cabinet Approves ₹1,856 Crore Sports Goods Manufacturing Scheme Over Eight Years

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹1,856 crore scheme to strengthen India’s sports goods manufacturing industry over the next eight years. The initiative aims to expand production capacity, encourage investment, support domestic manufacturers and establish new manufacturing hubs across the country.

According to the announcement, the scheme is expected to attract approximately ₹6,000 crore in investment into the sector. It also seeks to strengthen India’s position in domestic and international sports goods markets by improving infrastructure, supporting product development and enhancing manufacturing standards.

Sports Goods Scheme Aims to Expand Manufacturing Across India

The new initiative is designed to encourage the growth of sports goods manufacturing beyond established industrial centres such as Jalandhar, Ludhiana, Meerut and Jammu.

Union Information and Broadcasting Minister Ashwini Vaishnaw said the scheme would help create new manufacturing clusters while improving the capabilities of existing industry centres.

By supporting infrastructure development and investment, the government aims to provide manufacturers with better facilities to increase production and improve competitiveness.

The initiative is also expected to create opportunities for businesses looking to enter the sports goods industry and expand their operations in emerging manufacturing locations.

Four Integrated Sports Goods Manufacturing Zones Planned

A key component of the scheme is the development of four integrated sports goods manufacturing zones, each covering approximately 300 acres.

These zones are intended to provide dedicated infrastructure for manufacturers and encourage the development of connected industrial ecosystems. Bringing manufacturing facilities and supporting infrastructure together could help businesses improve operational efficiency and expand production.

The proposed zones are also expected to encourage the formation of new sports goods hubs outside the country’s traditional manufacturing centres.

The initiative seeks to strengthen the broader industry by creating an environment that supports manufacturers, investment and the development of sports-related products.

Manufacturers to Receive Turnover-Linked Incentives

The scheme includes financial incentives for eligible manufacturers making significant investments in the sector. Businesses investing ₹10 crore or more will qualify for turnover-linked incentives of up to 15%, subject to the scheme’s applicable conditions.

The incentive structure is intended to encourage companies to invest in manufacturing capacity and expand their business operations.

By linking support to turnover, the government aims to encourage investment while helping eligible manufacturers scale their activities. The scheme could also improve the attractiveness of India as a production destination for sports equipment and related goods.

Financial Support for Product Certification

Another important provision concerns the cost of product certification, which can be a significant expense for manufacturers seeking to meet required quality and compliance standards.

Under the scheme, eligible manufacturers will receive support covering:

• 70% of first-time certification costs

• 50% of certification renewal costs

This assistance is intended to reduce the financial burden associated with certification and encourage more businesses to meet recognised product standards.

Improved certification and quality compliance could help manufacturers strengthen customer confidence and compete more effectively in domestic and international markets.

Centres of Excellence to Support Sports Goods Development

The scheme will also support the establishment of centres of excellence in sports.

These centres are expected to contribute to improvements in product development, manufacturing capabilities and industry standards. Such facilities could help strengthen the connection between sports, manufacturing and technical expertise.

The broader objective is to improve the quality and competitiveness of Indian-made sports goods while supporting the industry’s ability to meet changing market requirements.

By encouraging better manufacturing practices and product standards, the government aims to create a stronger foundation for long-term growth in the sector.

Expected Impact on India’s Sports Goods Industry

The ₹1,856 crore initiative combines manufacturing infrastructure, investment incentives and certification support to encourage the expansion of India’s sports goods industry.

The anticipated investment of around ₹6,000 crore could support capacity expansion and help attract businesses to new manufacturing locations. The development of four integrated zones may also provide manufacturers with dedicated infrastructure to grow their operations.

For existing businesses, the scheme offers potential support for expansion and certification expenses. For new entrants, the proposed manufacturing hubs could create additional opportunities to establish production facilities.

The scheme’s long-term impact will depend on implementation, investment participation and manufacturers’ ability to use the available support effectively.

Conclusion

The Union Cabinet’s approval of the eight-year sports goods manufacturing scheme marks a step towards strengthening India’s domestic production ecosystem. With planned manufacturing zones, turnover-linked incentives and certification assistance, the initiative aims to attract investment, improve product quality and expand manufacturing beyond established centres. Its implementation could help Indian manufacturers build stronger capabilities and compete more effectively in domestic and international markets.