Policy Update
Akshat Jangid
Background
Ever since Independence, India’s sports policy has, at best, been viewed primarily through the lenses of international competition and national prestige and, at worst, through the lens of public scrutiny following disappointing performances on the global stage. India has often been described as a “sleeping giant” in world sports, a country with immense talent and demographic potential, yet constrained by persistent logistical, infrastructural, and institutional challenges.
With historically barely any Olympic returns relative to its population and economic size, India has increasingly sought to translate its sporting potential into measurable performance. Over the past decade, this has led to increased public investment in athlete development, sports infrastructure, and high-performance systems. More recently, however, the policy conversation has begun to move beyond medals alone. India is increasingly viewing sport not merely as a source of national prestige but as a sector capable of generating employment, investment, manufacturing, tourism, and broader economic activity.
This shift is reflected in the Khelo Bharat Niti 2025, also known as the National Sports Policy 2025, which replaced the National Sports Policy 2001. The policy aims to create a more centralized sporting ecosystem that covers grassroots participation, elite performance, social development, and economic activity. Notably, one of its five principal pillars is “Sports for Economic Development,” thereby recognizing sport’s potential to contribute to economic activities such as manufacturing, tourism, technology, employment, and investment.
The policy comes at a time when India is attempting to strengthen its position in international sport while also developing domestic industries with it. Professional sporting leagues have expanded the commercial value of cricket, football, kabaddi, badminton, and other sports. Growing consumer spending on fitness, sportswear, and recreational activities has also created job opportunities beyond elite competition.
The government’s ambitions have also increased. For the first time, India has expressed interest in hosting major international sporting events, including the 2036 Olympic Games. The Union Budget 2026–27 introduced a decade-long Khelo India Mission and a dedicated ₹500 crore initiative for sports goods manufacturing.
The central policy question is therefore shifting from “How can India win more medals?” to a more nuanced one: Can India build an economically sustainable sports ecosystem that generates employment, investment, manufacturing, participation, and international sporting success?
Functioning
Khelo Bharat Niti 2025 functions primarily as an overarching policy framework rather than a standalone government scheme. Even though the government has clarified that the policy itself does not include an independent financial outlay, its objectives are instead implemented through pre-existing and new programs, government institutions, sporting federations, and greater private-sector participation.
The policy is organized around five broad pillars:
- Excellence on the Global Stage
- Sports for Economic Development
- Sports for Social Development
- Sports as a People’s Movement
- Integration of Sports with Education Programs
Under the economic-development pillar, the policy seeks to encourage additional investment in sports infrastructure, sporting goods manufacturing, sports technology, tourism, professional leagues, and associated services. The private sector is encouraged to participate through sponsorships, public-private partnerships, infrastructure development, athlete support, and technology investment.
Implementation also depends heavily on the Khelo India – National Program for Development of Sports, which supports sports infrastructure, competitions, talent identification, Khelo India Centers, sports academies, the Fit India Movement, and programs promoting inclusivity.
Elite sporting performance is supported separately through programs such as the Target Olympic Podium Scheme (TOPS). At the same time, sports administration is increasingly governed through the National Sports Governance Act 2025 and accompanying rules.
Performance
India’s sporting infrastructure and institutional network have expanded considerably over the past decade.
As of July 2025, 306 sports academies had been accredited for training Khelo India Athletes, while hundreds of former champion athletes were employed as coaches across the Khelo India system. India has also expanded its elite-athlete support structure. As of April 2026, the Target Olympic Podium Scheme supported 51 Core athletes, 52 Para Core athletes, and 130 Development athletes through training, international competition, specialized equipment, coaching, and monthly financial assistance.
Government expenditure has risen alongside these institutional developments. The Union Budget 2026–27 allocated ₹4,479.88 crore to the Ministry of Youth Affairs and Sports, the highest allocation announced to that point and an increase of more than ₹1,100 crore over the previous year.
Figure 1: India’s Sports Budget Allocation for 2026-2027
Source: India’s Sports Budget 2026-27: Impact of the ₹4,479.88 Cr
The policy framework was further expanded in July–August 2026, when the Union Cabinet
approved a new Khelo India Scheme, enhancing Assistance to National Sports Federations by adding ₹36,441 crore for 2026–27 to 2030–31. The government described this as nearly eight times the scale of the previous Khelo India framework.
The economic side of the sports sector has also received greater attention. India’s sports-goods exports were reported at approximately ₹3,000 crore, while the government has articulated an ambition to scale exports to around ₹80,000 crore over the longer term.
India’s international performance has improved, though not tremendously. India won two medals at the Rio 2016 Olympics, seven at the Tokyo 2020 Olympics, and six at the Paris 2024 Olympics. These results indicate progress from earlier decades, although India’s medal tally remains relatively low compared with its population and growing economic size.
The emerging picture is therefore one of rapid institutional and fiscal expansion. Still, the economic returns of this investment will depend on whether participation, employment, commercial activity, and manufacturing increase in tandem with public expenditure.
Impact
Khelo Bharat Niti represents an essential shift in Indian sports policy, treating sport not only as a competitive or welfare activity but also as a potential contributor to economic development.
One possible positive impact is employment generation. A larger sporting ecosystem requires numerous professionals across industries and professions, such as coaches, doctors, and kit producers. Expanding grassroots participation can therefore create employment beyond professional athletes themselves.
A second impact is sports manufacturing. India already has some well-established manufacturing clusters in locations such as Jalandhar and Meerut, but much of the higher-value international sports-equipment market remains dominated by foreign brands and supply chains. Supporting domestic manufacturing, materials science, and equipment design could enable India to move from relatively low-value production to higher-value sporting goods and exports.
Figure 2: India’s Sporting Exports (in millions)
Source: Sports Goods Companies, Sports Goods Manufacturers in India – IBEF
Sports can also generate economic activity through driving tourism. Domestic leagues, international tournaments, and large multi-sport events generate demand for accommodation, transportation, food services, broadcasting, security, and event-management services.
However, economic development cannot be separated from participation. A commercially successful sports industry ultimately requires a large base of people who actively play, watch, and consume sports. Grassroots investment, therefore, is necessary, as it can also build the consumer and talent base required for a sustainable sports economy.
At the same time, there is a risk that economic benefits become concentrated in commercially successful sports and metropolitan areas while less popular disciplines and rural regions continue to depend heavily on government expenditure.
Government Policies and Initiatives
Several overlapping government policies and schemes support India’s emerging sports economy.
Khelo Bharat Niti 2025: The National Sports Policy 2025 provides the overarching strategy. Its economic-development pillar specifically promotes sports tourism, sporting-goods manufacturing, technology, entrepreneurship, and private investment. It also emphasizes sustainable funding models and stronger institutional governance.
Khelo India Scheme: Khelo India remains the government’s major grassroots sports development program. Its components include:
- Creation and upgradation of sports infrastructure
- Sports competitions and talent development
- Khelo India Centers and academies
- The Fit India Movement
- Promotion of inclusion through sport.
A greatly expanded version of the scheme was approved for 2026–31 as part of the government’s longer-term sports-development strategy.
Khelo India Mission: The Union Budget 2026–27 announced the Khelo India Mission, a decade-long program to systematically develop India’s sporting ecosystem. It seeks to strengthen talent development, coaching, sports science, infrastructure, and competitive opportunities.
Sports Goods Manufacturing Initiative: The Union Budget 2026–27 allocated ₹500 crore for a dedicated sports-goods manufacturing initiative. Its objectives include increasing domestic manufacturing capacity, strengthening research and equipment design, promoting innovation in materials science, integrating India into global sports supply chains, and generating employment.
Target Olympic Podium Scheme: TOPS provides specialized assistance to athletes with strong Olympic and Paralympic potential. Support includes international training, competition exposure, coaching, equipment, and monthly financial assistance.
Khelo India Rising Talent Identification (KIRTI): KIRTI focuses on identifying sporting talent among children aged 9–18 using standardized physical assessments and increasingly technology-based identification methods, including data analytics and digital tools.
National Sports Governance Act 2025: The Act seeks to improve governance, transparency, financial accountability, and institutional standards within National Sports Federations and other sporting organizations. Implementation has included the creation of rules governing national sporting bodies, the National Sports Board, and the National Sports Tribunal.
Emerging Issues
Commercial Dependence on Cricket
India’s sports economy remains heavily concentrated around cricket. Broadcasting revenues, sponsorships, franchise valuations, and audience attention in most other sports remain considerably smaller. Building a genuine sports economy, therefore, requires developing sustainable markets across multiple disciplines rather than assuming that cricket’s commercial model can be easily replicated.
Uneven Infrastructure
Large sports facilities have expanded, but access remains uneven across states, districts, and rural areas. Building infrastructure does not necessarily guarantee utilization. Maintenance, coaching availability, and regular competitions are equally important.
Weak Sports Manufacturing Value Chains
India possesses established sporting goods clusters but faces challenges in technology, branding, intellectual property, advanced materials, and global distribution. Achieving the government’s export ambitions will require improvements in productivity and product sophistication, rather than simply increasing production volumes.
Governance and Federation Capacity
Poor governance, administrative disputes, and inconsistent management within sporting federations can affect athletes and discourage commercial investment. The National Sports Governance Act attempts to address this, but its effectiveness will depend on implementation.
Athlete Career Security
Only a small proportion of athletes ultimately reach elite professional levels. A sustainable sports economy must therefore provide career pathways in coaching, sports science, management, media, technology, and related occupations.
Urban-Rural and Gender Gaps
Commercial investment naturally tends to follow larger consumer markets. Without continued public intervention, sports infrastructure and commercial opportunities could become increasingly concentrated in urban centers and among already popular sports.
Way Forward
India should increasingly evaluate sports policy using both sporting and economic indicators. Medal performance remains important, but indicators such as employment, participation rates, sporting goods exports, private investment, infrastructure utilization, and the number of viable professional sporting organizations should also be monitored.
Greater emphasis should be placed on developing the sports sector as an industry ecosystem. This includes manufacturing, sports technology, event management, broadcasting, sports science, tourism, and professional services rather than focusing exclusively on athletes.
The ₹500 crore sporting goods initiative could be more closely linked to manufacturing clusters, universities, materials science research institutions, and export promotion programs. This would help Indian manufacturers move toward higher-value products and internationally recognized brands.
Public-private partnerships should also be expanded carefully. Government can build foundational infrastructure and provide grassroots access, while private operators can contribute expertise, technology, and commercial management. However, access for lower-income and rural populations should remain protected.
Sports infrastructure should increasingly be evaluated by utilization rather than construction alone. Facilities that operate regularly, host local competitions, and provide affordable access are more economically and socially valuable than expensive facilities with limited use.
India should also build stronger career pathways around sport. Formal qualifications and training in coaching, physiotherapy, sports analytics, sports management, and sports technology could translate the sector’s expansion into meaningful employment for young people.
Finally, greater transparency will be necessary as expenditure rises. A central public dashboard could report state-wise information on infrastructure, athletes supported, participation, private investment, employment, sporting goods production, and performance outcomes.
Figure 3: India’s Sports Industry
Source: Sportlight- The business of sports in India
Khelo Bharat Niti 2025 represents an important change in how India conceptualizes sport. The policy recognizes that sporting success does not begin or end at the Olympic podium. A functioning sports economy requires grassroots participation, professional institutions, manufacturing capability, private investment, skilled workers, and sustained consumer demand.
India has substantially increased the policy attention and financial resources devoted to this ecosystem. The next challenge is ensuring that this investment creates not merely more sporting infrastructure, but a self-sustaining economic ecosystem around sport.
Selected References
Ministry of Youth Affairs and Sports. (2025). Khelo Bharat Niti 2025 – National Sports Policy 2025. Government of India.
Press Information Bureau. (2025, August 18). Objectives and Components of Khelo India Policy. Government of India.
Ministry of Youth Affairs and Sports. Khelo India – National Program for Development of Sports. Government of India.
Press Information Bureau. (2026, February 1). Union Budget 2026–27 Announces Launch of the Khelo India Mission to Transform the Sports Sector; ₹500 crore allocated for the Promotion of Sports Goods Manufacturing. Government of India.
Press Information Bureau. (2026, July–August). Revamped Khelo India Scheme and Enhanced Assistance to National Sports Federations. Government of India.
Press Information Bureau. (2026). National Sports Governance Act and Rules. Government of India.
Disclaimer
All the views presented belong solely to the authors and do not, in any way, depict IMPRI’s stance.
About the Author
Akshat Jangid is an undergraduate Economics student from Rutgers University with an interest in public policy, rural development, governance, and evidence-based policy analysis. He is currently a Research & Editorial intern at IMPRI.
Acknowledgements
The author gratefully acknowledges the reviewers (Arya & Tanisha) and IMPRI for providing their guidance, comments, and suggestions during the review and writing process.
Read more at IMPRI:
IndiaAI Mission (2024): Building Compute Sovereignty for Strategic Autonomy
Welfare Governance for Gig Workers under the Social Security (Central) Rules, 2026
