The Union Cabinet has cleared a scheme announced in Budget 2026-27 to build a globally competitive sports goods industry through dedicated manufacturing zones and turnover-linked incentives.

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• The Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme on October 28, 2026, and Information and Broadcasting Minister Ashwini Vaishnaw announced the decision.
• The scheme has a total outlay of Rs 1,856.67 crore for the period from 2026 to 2033-34.
• It was announced in the Union Budget 2026-27.
• The scheme aims to strengthen India's position in global sports goods supply chains and build a globally competitive industry.
• It focuses on research and innovation, skill development, quality certification and market development.
• It envisages dedicated Sports Goods Manufacturing Zones to promote cluster-based manufacturing and integrated industrial ecosystems.
• The zones will co-locate manufacturers, suppliers, testing facilities, design and prototyping centres and ancillary enterprises.
• Assistance is planned for upgrading existing MSME sports goods clusters, including common facilities and shared infrastructure.
• Rs 1,130 crore is earmarked for turnover-linked incentives.
• Rs 105 crore is set aside to help manufacturers meet quality and safety certifications required by international sports federations.
• The scheme seeks to attract domestic and foreign investment, reduce import dependence and boost exports and employment.
• Sports Minister Mansukh Mandaviya has said it will open new employment opportunities for youth and drive investment.