The Union Cabinet has approved a significant Rs 1,856 crore scheme aimed at bolstering the sports goods manufacturing sector across India, with a particular focus expected to benefit established hubs in Punjab, including Jalandhar and Ludhiana. The eight-year initiative seeks to enhance production capabilities, foster innovation, and provide substantial incentives to manufacturers, potentially revitalizing the industry.
Information was available with The Chenab Times that the scheme, approved on Wednesday, is designed to establish four integrated sports goods manufacturing zones, each to be spread over 300 acres. This infrastructure development is a cornerstone of the initiative to create dedicated environments conducive to large-scale production and industry growth. Furthermore, the scheme incorporates financial incentives for investors, including 20 per cent capital expenditure support for anchor investors making significant investments exceeding Rs 100 crore.
Incentives for Manufacturers and Certification Support
For manufacturers demonstrating substantial commitment, those investing Rs 10 crore or more will be eligible for turnover-linked incentives, which can extend up to 15 per cent of their turnover. This tiered incentive structure is intended to encourage a broad spectrum of investment, from large anchor players to medium-sized enterprises. The scheme also addresses the critical aspect of product quality and compliance by covering a substantial portion of the costs associated with product certification. Specifically, it will fund 70 per cent of the cost for first-time certification and 50 per cent of renewal costs. This support aims to help Indian sports goods meet international quality standards, enhancing their global competitiveness.
Focus on MSMEs and Centres of Excellence
The micro, small, and medium enterprises (MSME) sector, which currently plays a dominant role in India’s sports goods manufacturing, is anticipated to be a primary beneficiary of this scheme. The initiative recognizes the vital contribution of these smaller businesses and aims to provide them with the necessary support to scale up their operations and improve their product offerings. In addition to manufacturing zone development and financial incentives, the scheme also plans to support the establishment of centres of excellence in sports. These centres are expected to foster research, development, and skill enhancement within the sports goods industry, driving innovation and the creation of advanced sporting equipment.
The approved scheme is poised to strengthen India’s position in the global sports goods market. Beyond Punjab’s existing manufacturing powerhouses like Jalandhar and Ludhiana, the scheme also targets other significant manufacturing clusters, including Meerut in Uttar Pradesh and Jammu. The comprehensive approach, combining infrastructure development, financial incentives, and quality support, is expected to create a more robust and competitive sports goods ecosystem in the country.
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The Chenab Times News Desk
