Brief Context
Context NITI Aayog released a report titled “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector”, presenting a comprehensive assessment of India’s manufacturing capabilities, and global market opportunities. Global Market Opportunity in Sports Sector The global sports goods market, encompassing sports apparel, footwear, equipment, and accessories, was valued at approximately $700 billion in 2024 and is projected to cross $1 trillion by 2036. Within this ecosystem, th
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Syllabus: GS3/ Economy
Context
- NITI Aayog released a report titled “Realising the Export Potential of India’s Sports Equipment Manufacturing Sector”, presenting a comprehensive assessment of India’s manufacturing capabilities, and global market opportunities.
Global Market Opportunity in Sports Sector
- The global sports goods market, encompassing sports apparel, footwear, equipment, and accessories, was valued at approximately $700 billion in 2024 and is projected to cross $1 trillion by 2036.
- Within this ecosystem, the sports equipment segment alone accounts for approximately $140 billion, with global demand expected to reach around $283 billion by 2036.
India’s Position in Sports Equipment Manufacturing
- India’s domestic sports goods market is estimated at approximately $2.5 billion, with sports equipment accounting for nearly $0.5 billion, indicating substantial scope for expansion in both domestic production and exports.
- India currently exports approximately $275 million worth of sports equipment annually, representing around 0.5% of the global export market.
- Manufacturing activity is concentrated in established clusters such as Jalandhar (Punjab) and Meerut (Uttar Pradesh), supported by a network of exporters, domestic manufacturing units, and thousands of micro enterprises.
- The sector is overwhelmingly MSME-driven, with nearly 90% of production undertaken by small and micro enterprises.
Key Challenges Affecting Export Competitiveness
- High customs duties on critical raw materials such as carbon fibre, EVA foam, and polyurethane materials
- High certification costs required to meet international sporting standards
- Logistics inefficiencies and higher input costs
- Limited access to advanced manufacturing technologies
- Weak linkages with global sports brands and procurement ecosystems
- Limited global visibility and branding of Indian sports equipment.
Policy Recommendations to Boost Sports Equipment Exports
- Cost Competitiveness: Rationalise import duties on critical raw materials such as carbon fibre, EVA foam, and polyurethane to reduce input costs.
- Strengthening MSME Ecosystem: Expand targeted financial support, credit access, and technology upgradation schemes for MSMEs.
- Cluster-Based Manufacturing Development: Develop new port-proximate greenfield clusters to reduce logistics costs and improve export efficiency.
- Establish dedicated sports technology innovation hubs in collaboration with academia and industry.
- Quality Standards: Set up world-class testing and certification facilities to meet international standards.
Concluding remarks
- India needs a holistic ecosystem approach combining cost competitiveness, quality enhancement, and global integration is essential.
- With sustained policy push, it can transition from a low-share exporter to a global leader in sports equipment manufacturing.
Source: PIB