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2 Feb 2026·Source: The Hindu
4 min
EconomySocial IssuesNEWS

Budget 2026: ₹500 Cr Boost for Sports Goods Manufacturing

₹500 crore allocated to boost sports goods manufacturing in India.

Budget 2026: ₹500 Cr Boost for Sports Goods Manufacturing

Photo by Braden Collum

The sports goods manufacturing sector received a first-time allocation of ₹500 crore in the Union Budget. The allocation for the Youth Affairs and Sports Ministry was raised by over ₹1,000 crore. The overall Budget allocation for the Ministry was ₹4,479.88 crore, an increase of ₹1,133.34 crore from the revised allocation of ₹3,346.54 crore for 2025-26.

The allocation for the Sports Authority of India (SAI) was enhanced from ₹880 crore to ₹917.38 crore. The government's flagship Khelo India programme received an allocation of ₹924.35 crore.

Key Facts

1.

Sports goods manufacturing allocation: ₹500 crore

2.

Youth Affairs and Sports Ministry allocation: ₹4,479.88 crore

3.

SAI allocation: ₹917.38 crore

4.

Khelo India allocation: ₹924.35 crore

UPSC Exam Angles

1.

GS Paper 3: Economy - Government Budgeting, Industrial Policy

2.

Connects to government schemes for promoting manufacturing and sports development

3.

Potential question types: Statement-based, analytical questions on the impact of the budget allocation

Visual Insights

More Information

Background

The sports goods industry in India has a rich history, particularly in regions like Jalandhar, which became a hub for manufacturing sports equipment during the British Raj. This industry initially focused on meeting the needs of the British army and educational institutions. Over time, it evolved to cater to a wider domestic market and eventually began exporting its products. The development of this sector is linked to the broader industrial policies of the Indian government, including initiatives aimed at promoting small and medium enterprises (SMEs). Post-independence, the Indian government has implemented various policies to support the growth of the sports goods industry. These policies have included providing financial assistance, promoting technological upgrades, and facilitating access to raw materials. The sector has also benefited from government schemes aimed at promoting exports and enhancing competitiveness in the global market. The Make in India initiative has further provided impetus to domestic manufacturing, including sports goods. These efforts align with the broader goal of achieving self-reliance or Atmanirbhar Bharat in key sectors. The sports goods industry also plays a role in promoting sports culture and physical fitness in the country. Government initiatives like Khelo India and the establishment of the Sports Authority of India (SAI) have contributed to creating a more conducive environment for sports development. These initiatives aim to identify and nurture talent at the grassroots level, provide training and infrastructure support, and promote sports as a viable career option. The increased focus on sports has, in turn, boosted demand for sports goods, creating opportunities for manufacturers and entrepreneurs.

Latest Developments

The Indian sports goods industry is currently undergoing a transformation, driven by factors such as increasing disposable incomes, growing awareness of health and fitness, and the rising popularity of sports like cricket, football, and badminton. This has led to increased demand for high-quality sports equipment and apparel. The government's focus on promoting sports at the grassroots level through initiatives like Khelo India is further fueling this demand. The industry is also witnessing increased investment in research and development to innovate and produce advanced sports equipment. However, the industry faces challenges such as competition from cheaper imports, lack of access to advanced technology, and inadequate infrastructure. To address these challenges, the government is implementing measures to promote domestic manufacturing, provide financial assistance to SMEs, and improve infrastructure. The recent budget allocation of ₹500 crore specifically for sports goods manufacturing is a significant step in this direction. This allocation is expected to boost domestic production, create employment opportunities, and enhance the competitiveness of the Indian sports goods industry in the global market. The increased allocation for the Sports Authority of India (SAI) will further strengthen the sports ecosystem in the country. Looking ahead, the Indian sports goods industry has the potential to become a major player in the global market. The government's support, coupled with the industry's inherent strengths, can help it overcome the challenges and capitalize on the opportunities. The focus on innovation, quality, and sustainability will be crucial for achieving long-term success. The industry is also expected to benefit from the growing trend of sports tourism and the increasing popularity of e-sports. The development of a skilled workforce and the adoption of advanced manufacturing technologies will be essential for realizing the full potential of the Indian sports goods industry.

Frequently Asked Questions

1. What are the key facts from the Budget 2026 related to sports that are important for the UPSC Prelims exam?

For the UPSC Prelims, remember these key figures: ₹500 crore allocated for sports goods manufacturing, ₹4,479.88 crore for the Youth Affairs and Sports Ministry, ₹917.38 crore for the Sports Authority of India (SAI), and ₹924.35 crore for the Khelo India programme.

Exam Tip

Focus on memorizing the numerical allocations as these are frequently tested in the Prelims.

2. Why is the ₹500 crore allocation to boost sports goods manufacturing significant?

This allocation is significant because it's the first time the sports goods manufacturing sector has received a specific boost in the Union Budget. It addresses the growing demand for quality sports equipment due to increasing disposable incomes and health awareness, potentially transforming India into a sports manufacturing hub.

3. What are the recent developments in the sports sector highlighted by the budget allocation?

The increased budget allocation indicates a stronger government focus on promoting sports at the grassroots level through programs like Khelo India. It also shows a commitment to improving sports infrastructure and supporting athletes through enhanced funding for the Sports Authority of India (SAI).

4. How might the increased budget for sports impact the common citizen?

The increased budget could lead to better sports facilities at the community level, increased participation in sports, and improved health outcomes for citizens. It can also create more job opportunities in the sports goods manufacturing sector and related industries.

5. What is the historical background of sports goods manufacturing in India?

The sports goods industry in India, particularly in Jalandhar, began during the British Raj, initially catering to the needs of the British army and educational institutions. Over time, it expanded to serve the domestic market and eventually started exporting its products.

6. What are the important allocations to remember for the Mains exam?

For the Mains exam, remember the overall increase in the Youth Affairs and Sports Ministry allocation (₹4,479.88 crore) and the specific allocation for sports goods manufacturing (₹500 crore). These figures can be used to illustrate the government's commitment to the sports sector.

Practice Questions (MCQs)

1. Consider the following statements regarding the recent budget allocation for the sports sector: 1. The Union Budget 2026 allocated ₹500 crore for the first time specifically for sports goods manufacturing. 2. The overall budget allocation for the Ministry of Youth Affairs and Sports increased by more than ₹1,000 crore. 3. The allocation for the Sports Authority of India (SAI) was enhanced to ₹950 crore. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The Union Budget 2026 allocated ₹500 crore for the first time specifically for sports goods manufacturing. Statement 2 is CORRECT: The overall budget allocation for the Ministry of Youth Affairs and Sports increased by more than ₹1,000 crore, specifically by ₹1,133.34 crore. Statement 3 is INCORRECT: The allocation for the Sports Authority of India (SAI) was enhanced to ₹917.38 crore, not ₹950 crore.

2. Which of the following statements is NOT correct regarding the Khelo India programme?

  • A.It is a flagship programme for the development of sports at the grassroots level.
  • B.It aims to promote sports as a viable career option.
  • C.It received an allocation of ₹924.35 crore in the Union Budget 2026.
  • D.It focuses exclusively on promoting indigenous sports.
Show Answer

Answer: D

Option D is NOT correct. While the Khelo India programme does promote indigenous sports, it is not exclusively focused on them. It encompasses a wide range of sports disciplines to promote overall sports development in the country. The programme received an allocation of ₹924.35 crore in the Union Budget 2026 and aims to develop sports at the grassroots level and promote sports as a viable career option.

3. Which of the following is the primary objective of allocating ₹500 crore for sports goods manufacturing in the Union Budget 2026?

  • A.To import high-quality sports equipment from foreign countries.
  • B.To promote domestic production and enhance the competitiveness of the Indian sports goods industry.
  • C.To provide financial assistance to athletes.
  • D.To organize international sports events in India.
Show Answer

Answer: B

The primary objective of allocating ₹500 crore for sports goods manufacturing is to promote domestic production and enhance the competitiveness of the Indian sports goods industry. This allocation aims to boost local manufacturing, create employment opportunities, and reduce reliance on imports. While supporting athletes and organizing events are important, they are not the primary focus of this specific allocation.

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