At a time when India is gearing up for the Olympics 2036 bid, sports industry garnered the spotlight in the Union Budget 2026-2027. The Centre has for the first time made an allocation of ₹500 crore dedicated to promotion of sports goods manufacturing, while also hiking the overall budget allocation for the Sports and Youth Affairs Ministry budget (up ₹1133 crore y-o-y). Experts said this will enable India to become a dedicated hub for sports manufacturing with a specific focus on exports.
Stating that India has the potential to emerge as a global hub for high quality and affordable sports goods, Finance Minister Nirmala Sitharaman said a dedicated initiative will be rolled out to promote manufacturing as well as research and innovation in equipment design as well as material sciences.
The Budget also recognised the sports sector’s role in employment and skilling opportunities. Taking forward the government’s Khelo India Programme, the Khelo Indian Mission will be launched with the ambition to transform the sports sector “for the next decade.” The Mission will facilitate an integrated talent development pathway, supported by strong infrastructure and training centres as well as systematic development of coaches and support staff. It will also focus on integration of sports science and technology besides competitions and leagues to promote sports culture.
According to estimates by KPMG, Sports goods equipment and apparel manufacturing is valued at $ 6.7 billion in 2025 and is projected to touch $ 10 billion by 2030.
“The Budget has given priority to make India a sporting powerhouse through multiple initiatives around sports manufacturing, grassroot programs through Khelo India program, skilling and sports tourism,” said Prasanth Shanthakumaran, Partner and Head- Sports Sector, KPMG India. He added this will enable India to become a dedicated hub for sports manufacturing with a specific focus on exports.
Shobhit Singh, MD & CEO at Stone Sapphire India Pvt. Ltd said. “Supporting the production of sports goods by creating an ecosystem is a timely initiative that will create a solid basis for companies to increase their domestic value added , improve their quality of product and lessen their reliance on imports.”
Published on February 1, 2026