Budget 2026: India Sets Stage to Become Global Sports Manufacturing Hub

Market snapshot: The Union Budget 2026-27 has unveiled a landmark initiative for the sports goods industry, focusing on material sciences, equipment design, and R&D. Finance Minister Nirmala Sitharaman announced plans to revive 200 legacy industrial clusters, directly benefiting key manufacturing hubs in Jalandhar and Meerut. With a ₹10,000 crore SME Growth Fund and a ₹2,000 crore top-up for the Self-Reliant India Fund, the government is pivotally shifting focus from low-margin items to high-tech, export-ready sports equipment.

Summary: Budget 2026 introduces a dedicated plan for sports goods R&D and manufacturing, backed by substantial SME funds and cluster revival schemes to boost global competitiveness.

Key Takeaways

• Dedicated initiative for material sciences and innovation in equipment design.
• ₹12.2 lakh crore total capex for FY27 supports the wider infrastructure needed for logistics.
• Revival of 200 industrial clusters to improve cost-competitiveness for MSMEs in Jalandhar and Meerut.

SAHI Perspective

This policy pivot is essential as Indian sports exports recently faced a 6% decline in October 2025 due to US tariff pressures. By incentivizing R&D and high-quality manufacturing, the government is helping the sector move up the value chain. Listed players like Cosco India (COSCO) stand to gain from enhanced cluster infrastructure, though they must overcome recent operational inefficiencies to leverage these incentives.

Closing Insight

The transition from a labor-intensive sector to a technology-driven manufacturing hub is no longer optional; it is the core of India’s 2026 industrial strategy.

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