NITI Aayog released a report titled "Realizing the Export Potential of India's Sports Goods Manufacturing Sector

NITI Aayog released a report titled "Realizing the Export Potential of India's Sports Goods Manufacturing Sector

NITI Aayog released a report titled “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector”, highlighting a paradox of high potential but low global competitiveness.

About the Report

¨     It is a comprehensive assessment of India’s manufacturing capabilities, global market opportunities, and the policy interventions required to position the country as a competitive player in the global sports equipment industry.

¨     Aligned with Make in India and the vision of Viksit Bharat @2047, the report offers a data-driven roadmap to boost sports equipment exports.

¨     The report highlights the need for rationalising duties on key raw materials, strengthening domestic supply capabilities, and developing common facility centres to support technology transfer and quality improvement.

Key Findings of the Report

Global Market Opportunity

¨     The global sports goods market, which includes apparel, footwear, equipment, and accessories, was valued at around $700 billion in 2024 and is expected to cross $1 trillion by 2036.

¨     The sports equipment segment alone accounts for nearly $140 billion and is projected to grow to about $283 billion by 2036.

¨     Global exports of sports equipment were approximately $52 billion in 2024, showing steady growth.

India’s Position in Sports Equipment Manufacturing

¨     India’s sports equipment manufacturing ecosystem remains relatively small in global terms but possesses strong foundational capabilities.

¨     India currently exports approximately $275 million worth of sports equipment annually, representing around 0.5% of the global export market.

¨     Manufacturing is concentrated in clusters like Jalandhar and Meerut, supported by exporters, manufacturers, and numerous microenterprises.

¨     The sports sector is largely MSME-driven, with about 90% of production by small and micro enterprises, underscoring its role in jobs and local economic growth.

¨     India’s domestic sports goods market is about $2.5 billion, with $0.5 billion from equipment, indicating strong growth potential in production and exports.

Key Challenges Affecting Export Competitiveness

¨     The report highlights structural challenges limiting export growth and global competitiveness. Indian manufacturers face a 15–20% cost disadvantage compared to competitors like China and Pakistan.

The causing factors are

¨     High customs duties on critical raw materials such as carbon fibre, EVA foam, and polyurethane materials

¨     High certification costs required to meet international sporting standards

¨     Logistics inefficiencies and higher input costs

¨     Limited access to advanced manufacturing technologies

¨     Weak linkages with global sports brands and procurement ecosystems

¨     Limited global visibility and branding of Indian sports equipment

¨     Strategic Roadmap and Policy Recommendations

¨     Rationalisation of duties on critical raw materials

Technology upgradation and capital support for MSMEs

¨     Development of four new greenfield sports manufacturing clusters in port-proximate states

¨     Modernisation of existing clusters in Meerut and Jalandhar

¨     Establishment of shared testing and certification facilities

¨  Development of a global “Brand India” framework for sports equipment by roping in National Sports Federations (NSFs), corporates, athletes and manufacturers

¨ The roadmap proposes an investment of about ₹7,500 crore (2027–31) to boost manufacturing, exports, and ecosystem development.

¨  The report emphasises product diversification beyond cricket gear and inflatable balls towards higher‑value segments (fitness, winter sports, performance gear).

Export Growth and Employment Potential

¨    The report projects India’s sports equipment exports to rise from $275 million in 2024 to about $8.1 billion by 2036, raising its global share from 0.5% to around 11%.

¨   This expansion could generate approximately 54 lakh additional jobs, particularly within MSME-led manufacturing clusters.

Leveraging Global Sporting Opportunities

¨     The report notes that upcoming global sporting events, including India’s bid for the 2036 Olympics, offer a sustained opportunity for Indian manufacturers to integrate into global procurement networks.

¨     The report is based on extensive primary and secondary research, including consultations with over 50 stakeholders across industry, government, and the broader ecosystem.