On October 28, the Union Cabinet approved the Khelo India Sports Goods Manufacturing Scheme with an outlay of INR 1,856.67 crore. The money will be spent from 2027 to 2034. This scheme was first announced in the Union Budget along with a timeline that matters, as often we have seen good ideas often stay on paper only.
Currently, India produces a lot of sports goods. A case in point is Jalandhar and Meerut. The two big centres are popular for making sports items and products. Together the two cities have over 250 exporting units and nearly 20,000 household units. About 90% of production comes from small and micro firms.
Especially the bat manufacturing industry is massive, India producers are experts in the field. Indian brands and makers hold about 75% to 80% of the global cricket bat market. But our equipment exports are only $275 million. The world exports about $52 billion. That gap is massive.
Smaller firms find it hard to expand. As per the provision of this scheme they lack testing labs, design help and obviously financial assistance. They also struggle to get the certificates that foreign buyers ask for.
How will the scheme work?
The scheme will probably work on multiple fronts (six-stages). On the first level, it plans manufacturing zones. These will bring makers, suppliers, testing labs and design centres to one place. There may be four such zones, each over 300 acres.
While on the second stage it offers money for investment. Anchor investors who put in at least INR 100 crore get 20% support on capital spending. Makers who invest INR 10 crore or more can get up to 15% as turnover-linked support. Together, these two parts have INR 1,130 crore.
In the third stage, it helps in holding up existing clusters that are already on the ground. Shared facilities will be upgraded, with costs split with the States. This is where small firms stand to gain most.
In the fourth stage, it pays for certification. INR 105 crore is set aside. The government will cover 70% of the cost of a first certificate and 50% of renewals. A bat or a helmet with an international seal sells more easily abroad.
It backs new ideas on the fifth vertical. Centres of Excellence will study materials and protective gear. Start-ups registered with DPIIT can get grants of up to INR 20 lakh.
On the sixth level, which is the outreach stage, it covers skills and marketing. There will be training, an India Sports Expo and a Brand India campaign.
Relying on other schemes
Khelo India Sports Goods Manufacturing Scheme will take assistance from other schemes. For instance the zones will use land and sheds from the BHAVYA scheme and NICDC industrial parks. Research will link with the Anusandhan National Research Foundation. Marketing will use the Export Promotion Mission.
This is termed to be a very sensible and useful measure. The government is not building everything new. It is patching the gaps from the already existing design. The design will not only give cash to the beneficiaries but will fix the whole chain, from factory to certificate to buyer.
However, there remains some pertinent questions. For example, large investors will gain from the 20% support. Will small firms see the same benefit? Nearly 90% of the sector is small, so the scheme must reach them. The cluster upgrades will decide that.
Land acquisition will be another test to determine the positive outcome. Zones of 300 acres need clearances and State cooperation. If there are any delays there it means it will slow down everything.
Besides, what matters more is the timing. As we know Los Angeles will be hosting the Olympics in 2028. Ahmedabad is also going to host the Commonwealth Games in 2030. Brisbane follows in 2032. So there is every possibility that the demand for equipment will rise in the coming years.
What authorities are trying to gain out of this scheme, is that it wants India to make more of its own sports goods and import less. It wants more exports, more jobs and better quality.
As per the official estimation predictions, the exports could reach $8.1 billion by 2036 which implies as many as 54 lakh jobs. That is a big leap if executed well.
Furthermore this scheme has been made to develop a strong relationship between sport and industry. As Khelo India builds players. This scheme is going to build the equipment they use.
If both work, an Indian athlete may one day train, and win, with gear made in Jalandhar or Meerut. That is the ultimate goal of Khelo India Sports Goods Manufacturing Scheme.
COURTESY: PIB SRINAGAR
