An increase in the budget outlay, a push for sports goods manufacturing, and a proposal to extend the Khelo India Mission for the next 10 years were the major takeaways for sports in the Union Budget 2026–27 presented by Finance Minister Nirmala Sitharaman in New Delhi on Sunday.
These major initiatives make it clear that the government is trying to change the country's sports ecosystem from funding events and athletic support to creating infrastructure, developing and nurturing talent, and being self-reliant when it comes to equipment and infrastructure.
These moves are aimed at developing the Indian sports ecosystem capable of putting up its best foot forward at the 2030 Commonwealth Games and the 2036 Olympics, for which the country has bid. With that in mind, the Finance Minister on Sunday proposed plans for a major upgrade in infrastructure and for the development of sports at the grassroots level.
“India has the potential to emerge as a global hub for high-quality, affordable sports goods,” Sitharaman said in her Budget speech. “I propose a dedicated initiative for sports goods that will promote manufacturing, research, and innovation in equipment design as well as material sciences.”
“I propose to introduce a dedicated Rs. 10,000 crores SME growth fund to create future champions, incentivising enterprises based on select criteria,” the Minister added. The government also proposed a long-term Khelo India Mission that will be in force for the next 10 years.
“Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the sports sector over the next decade,” Sitharaman said. The Ministry of Youth Affairs and Sports has flagged the cost of sports equipment as prohibitive for sportspersons and urged the government to take note of this.
On Sunday, the government took action on this matter and proposed to develop India as a global sports goods hub, benefitting existing centres like Meerut and Jalandhar while making it an attractive sector for investment. Sitharaman proposed a plan to boost sports goods manufacturing, which could also directly benefit India’s existing hubs, like Meerut and Jalandhar, while also making equipment more accessible domestically.
Finance Minister Sitharaman also noted the sports sector’s potential as a driver of employment, skilling, and job creation. The sports sector provides “multiple means of employment, skilling and job opportunities”, the minister said, underlining the government’s intent to develop sports as an economic ecosystem, including training, coaching, equipment manufacturing, and support services.
The government has also increased the total budget allocations for the Ministry of Youth Affairs and Sports in this budget. The budget for the Khelo India programme has been increased fromRs 800 crore to Rs 1000 crore, while among the other major hikes, the budget for Sports Authority of India (SAI) has been increased from Rs 815 crore to Rs 830 crore, while the outlay for incentives to athletes was reduced from 42.65 crore to Rs 37 crore.
The National Sports Federations will get more now with the budget increased from Rs 340 cr to Rs 400 cr, while the National Dope Testing Laboratory will get Rs 23 crore instead of Rs 18.70 cr it was allocated in the last budget.