Copyright infringement not intended

Picture Courtesy:  knnindia 

Why in the News?

NITI Aayog has released a strategic report, "Realising the Export Potential of India’s Sports Equipment Manufacturing Sector," as part of the Viksit Bharat @2047 vision. 

What are the key Highlights of the Report?

The report outlines a plan to transform India into a global manufacturing hub, aiming to increase sports equipment exports from $275 million in 2024 to an ambitious $8.1 billion by 2036.

Current Status of the Sector

Vast Global Market

The global sports goods market was valued at $700 billion in 2024 and is projected to exceed $1 trillion by 2036. The sports equipment segment alone is a $140 billion market. 

India's Minimal Share

Despite a domestic market of $2.5 billion, India's exports are only $275 million, which is a mere 0.5% share of the global export market. 

MSME-Driven Industry

The sector is highly labor-intensive and is dominated by Micro, Small, and Medium Enterprises (MSMEs), which contribute to nearly 90% of total production.

Geographical Concentration

Manufacturing is heavily concentrated in traditional, landlocked clusters like Meerut (Uttar Pradesh) and Jalandhar (Punjab). Meerut alone accounts for 40% of India’s total sports goods exports. 

Challenges Hindering India's Growth

Significant Cost Disadvantage

Indian manufacturers face a 15–20% cost disadvantage compared to competitors like China and Pakistan. 

• This is mainly due to high import duties on critical raw materials such as carbon fiber, EVA foam, and advanced polyurethanes. 

Lack of Technology and Scale

The industry relies heavily on traditional manual craftsmanship, making it difficult to produce precision-engineered, mechanized products (like thermo-molded footballs) at the scale required for large global orders.

Logistical Inefficiencies

The location of major clusters in landlocked states like Punjab and UP results in high inland transportation costs to seaports, which erodes the price competitiveness of exports.

Weak Global Branding

High costs for international certification and the absence of a strong "Brand India" push Indian manufacturers to bring low-value, unbranded suppliers in global value chains.

Policy Recommendations to Unlock Export Potential

Tariff Rationalization

Implement a zero-duty regime on imported raw materials and capital goods to eliminate the 15-20% cost disadvantage faced by manufacturers.

Develop New Greenfield Clusters

Establish four new manufacturing clusters in coastal states like Gujarat, Tamil Nadu, and Andhra Pradesh to slash logistics costs, while also modernizing existing hubs in Meerut and Jalandhar.

Leverage MSME Frameworks

Integrate sports manufacturing units with schemes like the Self-Reliant India (SRI) Fund to provide equity funding for technology adoption and capacity expansion.

Shared Quality Infrastructure

Create Common Facility Centres (CFCs) for shared testing and certification. This will help MSMEs meet global quality standards without bearing prohibitive individual costs.

Strategic Significance of Boosting the Sector

Massive Employment Generation

The targeted export growth has the potential to create 54 lakh additional cumulative jobs by 2036, effectively utilizing India's demographic dividend. (Source: NITI Aayog)

Capitalizing on the "Decade of Sports"

With India bidding to host the 2036 Olympic Games, developing a robust domestic manufacturing ecosystem is a strategic imperative.

Moving Up the Global Value Chain

This initiative can help transform India's global image from a low-cost vendor to a high-quality, premium supplier, much like Taiwan did with high-value carbon-fiber sports equipment.

Conclusion

India must transform traditional craftsmanship into a high-tech, export-led powerhouse by slashing tariffs, funding MSMEs, and moving manufacturing closer to ports to ensure global competitiveness.

Source: PIB