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Sports sector set for major boost in Budget 2026 as Rs 10,000 crore SME fund announced

Union Budget 2026 launches Khelo India Mission, plans modern infrastructure, athlete development, and ₹10,000 crore SME fund for sports sector growth.

By NES Web Desk

Feb 01, 2026 14:03 IST

India’s sports sector is set for a major overhaul. On Sunday, Union Finance Minister Nirmala Sitharaman presented the budget for the 2026-27 financial year and unveiled plans to transform India into a world-class sporting nation over the next decade.

While sports like cricket, football, and chess have captured global attention, track and field events and other disciplines still struggle with limited infrastructure and issues like doping. The Finance Minister’s announcement aims to tackle these challenges head-on.

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Khelo India Mission to transform sports

During the budget presentation, the Finance Minister outlined long-term plans to develop India’s sports ecosystem. “The Sports Sector provides multiple means of employment, skilling and job opportunities. Taking forward the systematic nurturing of sports talent which is set in motion through the Khelo India programme, I propose to launch a Khelo India Mission to transform the Sports sector over the next decade,” she said.

The mission will focus on:

Development of athletes and support staff

Creation of training centres for progression from grassroots to elite levels

Proper use of sports science and technology

Organising competitions and leagues to promote sports culture

Building modern infrastructure for international-standard tournaments

The initiative comes ahead of India hosting the 2030 Commonwealth Games and its bid for the 2036 Olympics, highlighting the government’s commitment to elevating sports in the country.

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Boosting domestic sports manufacturing and innovation

The Finance Minister also emphasised building India as a global player in sports goods manufacturing. She said that India has the potential to make a mark internationally by producing high-quality yet affordable sports goods. She added that research in equipment design, innovation in material science, and product development would be introduced, enabling domestic companies to manufacture advanced sports equipment and reduce dependence on imports.

To support this vision, a dedicated SME Growth Fund of ₹10,000 crore has been proposed, along with incentives for sports organisations that meet specific conditions. This move will also benefit sports equipment startups and reduce financial pressure on athletes, aligning with the government’s ‘Make in India’ program.

In the previous financial year, the Ministry of Youth Affairs and Sports received ₹3,794.3 crore, with the highest allocation directed toward the Khelo India project. This budget signals a renewed push to further strengthen the program over the next decade.

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