Context:

• Sports in India are expanding beyond cricket, with athletes like Neeraj Chopra and Lakshya Sen highlighting growing diversity.
• The sports ecosystem includes not just athletes and viewership but also sports goods manufacturing, an important yet often overlooked sector.
• This sector is labour-intensive and plays a key role in the economics of sport.
• A report by NITI Aayog and the Foundation for Economic Development (FED) titled “Realising the export potential of the sports equipment manufacturing market in India” examines this sector.
• Despite strong cultural engagement with sports, India contributes only 0.5% to the $50 billion global sports equipment trade.
• This gap is due not to lack of capability, but structural issues limiting the sector’s growth potential.
• This article highlights the overlooked role of sports goods manufacturing in India’s sports ecosystem, examining structural challenges, cost disadvantages, and policy gaps while outlining strategies to unlock its global export potential.

India’s Sports Equipment Industry: Diversity and Challenges

• Concentrated Yet Fragmented Manufacturing Base
  • India’s sports equipment manufacturing is geographically concentrated in centres like Jalandhar and Meerut, which account for over 80% of output.
  • The sector is dominated by MSMEs engaged in labour-intensive production, which sustains traditional skills but limits scalability, technology adoption, and global brand development.
• High Product Diversity and Policy Challenges
  • The industry is highly diverse, with different sports equipment requiring distinct raw materials, machinery, and techniques.
  • This diversity complicates policy design, often resulting in generic measures that fail to address category-specific needs.
• Cost Disadvantage and Competitiveness Issues
  • Indian manufacturers face an average 15% cost disadvantage compared to competitors like China and Pakistan.
  • Higher input costs, inefficient logistics, and lack of scale reduce export competitiveness and weaken pricing power in global markets.

Core Issues in India’s Sports Equipment Industry

• Limited Access to Advanced Inputs and Technology
  • High-performance sports equipment requires specialised materials and precision tools, many of which are not produced domestically or are available only at small scale.
  • Import duties on these inputs and advanced machinery raise production costs, making it difficult for MSMEs to invest in technology upgrades and diversify products.
• Structural and Logistical Constraints
  • Manufacturing is concentrated in northern India, increasing logistics costs for exports through distant ports.
  • Rising land prices, fragmented infrastructure, and regulatory delays further reduce efficiency, disproportionately affecting financially weaker firms.
• Certification and Compliance Barriers
  • Global markets demand strict quality standards, but India lacks sufficient certified facilities.
  • Manufacturers rely on expensive European testing labs, with costs ranging from ₹5 lakh to ₹50 lakh per stock keeping unit (SKU).
  • Lengthy certification processes delay market entry and hinder innovation.
• Weak Demand and Branding Challenges
  • India has struggled to build globally recognised sports brands beyond cricket.
  • Limited marketing, few international partnerships, and lack of athlete-brand linkages restrict global demand.
  • As a result, firms remain focused on low-value contract manufacturing instead of developing their own brands.

Reform, Support, Upgrade: Pathway for India’s Sports Equipment Industry

• Policy Reforms and Fiscal Support
  • Addressing sectoral challenges requires rationalising import duties on specialised inputs and machinery to improve competitiveness.
  • The report recommends targeted fiscal support, including export incentives, assistance with certification costs, and support for participation in global trade platforms.
• Leveraging Industrial Strengths for Upgradation
  • India can utilise its strengths in technical textiles, footwear, plastics, and light engineering to upgrade sports goods manufacturing.
  • This can help scale production, adopt new technologies, and shift towards high-value, performance-oriented equipment.
• Building Testing and Certification Infrastructure
  • Establishing internationally recognised testing and certification centres is essential to reduce compliance costs, speed up product launches, and position India as a standards-setting player.
• Strengthening Domestic Supply Chains and Branding
  • Investing in local production of advanced materials like composites and performance fabrics can reduce import dependence.
  • Simultaneously, developing strong domestic brands through coordinated efforts involving athletes, federations, and government is crucial.
• Demand Creation and Strategic Opportunities
  • Strategic procurement linked to upcoming international sporting events can boost short-term demand and promote Indian products globally.
  • A shift from contract manufacturing to brand ownership is necessary for long-term growth.
• Opportunity for Transformation
  • With rising domestic sports participation, changing global supply chains, and opportunities from hosting major events, India has the potential to transform into a global leader.
  • Achieving this requires a strategic and well-executed transition to large-scale, advanced manufacturing.

Conclusion

• India’s sports manufacturing sector holds strong potential, but realising it requires structural reforms, technological upgrades, and strategic branding to move from low-value production to global leadership.