Unlocking the Future of Sports Goods Manufacturing in India Post Union Budget 2025–26

The sports goods manufacturing sector in India has long been a significant contributor to the economy, especially in regions like Meerut and Jalandhar. Yet, until recently, it lacked focused support to fully realize its potential on the global stage. The Union Budget 2025–26 has changed this by introducing dedicated measures aimed at modernizing the sector, boosting exports, and encouraging innovation. This blog explores how these budgetary provisions can transform India’s sports goods industry and what it means for manufacturers, exporters, and the broader economy.

The Indian sports goods industry, expected to expand from USD 4.88 billion in 2024 to USD 6.6 billion by 2027, provides employment to over five hundred thousand workforce. The inaugural sports goods manufacturing conclave was organised by Ministry of Sports in 2025. During this event, the Sports Ministry announced the creation of a task force that includes representatives from the Ministry, National Sports Federations, and industry stakeholders to develop a specific sports goods manufacturing policy. The Sports Minister has set an ambitious goal to increase India's share in global sports manufacturing from the current 1% to 25% by 2036.

Sports goods manufacturing unit in India, showing workers assembling cricket bats

MYAS Poised to Propel Growth

The Government of India’s decision to shift the Sports Goods Manufacturing sector from its earlier administrative ministry to the Ministry of Youth Affairs & Sports (MYAS) marks a strategic realignment with far‑reaching implications. For the first time, the sector is placed under a ministry that directly understands its role in athlete development, grassroots sports, high‑performance systems, and India’s long‑term sporting ambitions including the bid for the 2036 Olympic Games.

This shift provides the sector with focused attention, sector‑specific policy support, and integration with national sports development priorities. Under MYAS, the sports goods sector is no longer treated as a generic manufacturing category. It becomes a strategic pillar of India’s sports ecosystem, receiving targeted support aligned with athlete needs, federation requirements, and national sports programmes.

The shift of the Sports Goods Manufacturing sector to MYAS is a transformative policy decision. It brings the sector into the heart of India’s sports development agenda, ensures targeted support, and positions the industry for accelerated growth, innovation, and global competitiveness. With the right implementation, this move can redefine India’s role in the global sports economy and contribute meaningfully to the vision of Viksit Bharat 2047.

MYAS’s New Focus Can Attract Foreign Manufacturers, Technology Transfers & FDI

The repositioning of the Sports Goods Manufacturing sector under the Ministry of Youth Affairs & Sports (MYAS) creates a strategic environment that is far more attractive to global manufacturers, investors, and technology partners. This shift signals to the world that India is serious about building a modern, innovation‑driven sports manufacturing ecosystem aligned with its sporting ambitions.

Dedicated Budgetary Allocation for Sports Goods Manufacturing

For the first time, the government has earmarked a specific budget allocation to upgrade and expand the sports goods manufacturing ecosystem. This move acknowledges the sector’s potential to become a global leader in producing quality sports equipment. Cities like Meerut and Jalandhar, already known for their craftsmanship, will benefit from this focused investment. The Union Budget for 2026–27 includes an allocation of ₹500 crore for the sector, which is a direct result of this shift.

The allocation aims to:

• Modernize production facilities with new machinery and technology

• Expand manufacturing capacity to meet rising domestic and international demand

• Support infrastructure development in emerging clusters beyond traditional hubs

• Support research and development

• Bolster MSMEs and startups

• Promotion of "Make in India" in sports

  
  

This financial commitment signals a shift from viewing sports goods manufacturing as a cottage industry to recognizing it as a strategic sector for economic growth and export competitiveness.

Strengthening MSMEs and Manufacturing Clusters

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s sports goods sector. The budget highlights the need to support these enterprises through several targeted measures:

• Easier access to credit to help MSMEs invest in technology and scale operations

• Technology upgrades to improve product quality and reduce production costs

• Simplified compliance processes to reduce administrative burdens

• Development of cluster-level infrastructure such as testing labs and common service centers

  
  

By focusing on cluster development, the government aims to reduce bottlenecks like inconsistent raw material supply and outdated manufacturing methods. For example, the establishment of testing facilities in Jalandhar will help manufacturers meet international quality standards more efficiently, boosting their export potential.

Encouraging Innovation and Research & Development

The budget also emphasizes moving beyond traditional manufacturing to embrace innovation. This includes:

• Investment in materials science to develop lighter, stronger, and more durable sports equipment

• Adoption of digital technologies such as AI and IoT for quality control and process automation

• Collaboration between industry players, academic institutions, and research organizations to foster product innovation

  
  

Such initiatives will help the sector transition from low-value production to high-value manufacturing. For instance, integrating AI-driven quality checks can reduce defects in cricket balls or hockey sticks, making Indian products more competitive globally.

Export Promotion and Global Market Access

India’s sports goods exports have faced challenges related to certification, branding, and logistics. The Union Budget 2025–26 addresses these issues by:

• Enhancing export readiness through better certification and compliance with international standards

• Supporting branding efforts to create a distinct identity for Indian sports goods in global markets

• Modernizing logistics and supply chains to reduce delivery times and costs

  
  

These measures aim to expand India’s share in the global sports goods market. For example, improved certification processes will help Indian manufacturers meet the strict requirements of European and North American markets, opening doors to new customers.

Impact on Key Manufacturing Hubs

Meerut and Jalandhar have been traditional centers of sports goods manufacturing for decades. The budget’s focus on cluster development and MSME support will directly benefit these regions by:

• Upgrading infrastructure such as roads, power supply, and testing labs

• Providing financial incentives for local manufacturers to adopt new technologies

• Encouraging skill development programs to enhance workforce capabilities

  
  

Emerging clusters in other parts of India will also receive attention, helping to diversify production and reduce regional disparities.

Challenges and Opportunities Ahead

While the budget provides a strong foundation, the sector must address several challenges to fully capitalize on these initiatives:

• Ensuring timely and efficient disbursement of funds to MSMEs and clusters

• Building awareness among manufacturers about new technologies and export opportunities

• Strengthening partnerships between industry and research institutions for sustained innovation

  
  

At the same time, the opportunities are significant. With growing global demand for quality sports equipment and India’s large domestic market, manufacturers can scale operations and improve profitability.

What This Means for Stakeholders

• Manufacturers can expect better access to finance, technology, and infrastructure, enabling them to improve product quality and expand production.

• Exporters will benefit from streamlined certification processes and improved logistics, making it easier to enter and compete in international markets.

• Policy makers have a clear roadmap to support a sector that contributes to employment, exports, and India’s sporting ambitions.

• Consumers may see a wider range of high-quality, affordable sports goods made in India.

  
  

Moving Forward

The Union Budget 2025–26 marks a turning point for India’s sports goods manufacturing sector. The dedicated support for modernization, MSMEs, innovation, and exports creates a strong foundation for growth. Stakeholders must now work together to implement these measures effectively and build a globally competitive industry.