The Indian sports goods market is estimated to grow to $ 6.6 Bn by 2027. In recent years, there has been a significant increase in the popularity of other sports such as football, badminton, and tennis, thanks to the success of Indian athletes at the international level. 100% FDI is allowed in sports goods manufacturing and sports infrastructure construction.
Australia has a strong sports industry, with a well-established infrastructure that supports a range of professional and amateur sports. The country has a high level of participation in sports, with many athletes achieving success at the international level. Australia’s sporting profile in India benefits ‘Brand Australia,’ and sports diplomacy can be used to advocate for gender equality, women’s empowerment, and disability inclusion.
RISE IN INVESTMENTS:
In India, sports have always been an integral part of the culture, and the country has a long and rich history in sports such as cricket, hockey, and kabaddi. The Indian sports sector is seeing growth in terms of infrastructure, funding, and talent development, with the government and private entities investing heavily in sports facilities, training programs, and international events. The sports goods industry of India is nearly a century old and holds a prominent position in the global market. The industry has flourished, driven by a skilled workforce hence known for its role in creating employment and contributing to the country’s economy. The industry employs more than 500,000 people. India currently manufactures more than 300 sports-related goods such as toys, video game consoles and articles, festive and carnival articles, gymnastics and sportswear goods, fishing articles, outdoor games, toys, etc. Uttar Pradesh, Punjab, Maharashtra, Delhi, Tamil Nadu, Jammu, and West Bengal are among the top sports goods producing states in India. Among these, Jalandhar city in Punjab and Meerut city in Uttar Pradesh account for about 75-80% of the total production in the country. The global sports goods industry is highly competitive owing to the presence of many established multinational players. The majority of the production of sports goods is outsourced to the Asia-Pacific region, making it one of the largest sports goods manufacturing regions in the world.
During 2021-22, India exported sporting goods of total worth US$ 546 million. This was a significant increase from the last year’s exports valued at US$ 402.44 million. Since 2016-17, the sporting goods exports from India have witnessed growth at a CAGR of 13%. India exports all kinds of sporting goods such as toys, recreational games, puzzles, video games, parlour and billiard games, casino articles, festive, carnival, and entertainment articles, gymnastic articles, swimming and outdoor games equipment, fishing and hunting equipment, swings, circus, shooting gallery and fairground amusement articles. From April 2022-August 2022, India exported sporting goods worth US$ 280.37 million.
India is one of the leading international sourcing destinations for inflatable balls and other sports goods for global brands such as Mitre, Lotto, Umbro, and Wilson. During 2019-20, gymnasium equipment contributed 10% to exports, while sports gloves and water surfing boards accounted for 3% and 2% of exports. India exports sporting goods to the USA, China, Australia, Germany, the UAE, the UK, Netherlands, France, South Africa, Sweden, Canada, Belgium, Brazil, Chile, Denmark, and a total of more than 200 countries. From April 2022-August 2022, exports to the USA stood at US$ 118.31 million, the UK stood at US$ 31.34 million, Germany stood at US$ 17.53 million and Australia stood at US$ 15.19 million.
INVESTMENTS AND GROWTH
Some of the major investments on this sector are as follows:
The export value of bicycles and its parts from India amounted to over $ 461 Mn in the FY2022.
Sports sector in India is growing due to entry of multiple sports start-ups involved in sports infrastructure, data/content aggregation, education and training, online retail, technology and online ticket booking.
India is one of the potential bidders to host 2036 Summer Olympics.
Under the National Investment Pipeline, capital expenditure of $ 1.1 Bn (FY20-FY25) has been earmarked for developing sports infrastructure in the country.
Some of the vital policies of the Government are as follows:
Government of India under Union Budget 2023 has announced 27% hike leading to highest- ever sports budget and 67% increase in Khelo India Scheme.
Government of India increased sports budget by 11.08 % in 2022-23.Sports Goods Export Promotion Council (SGEPC) set up for promotion of India’s exports of sports goods.
Gujarat launched its own sports policy for 2022-27 for growth of sports manufacturing and sports tourism.
For the development and exposure of Indian sporting goods, the Sports Goods Export Promotion Council (SGEPC) regularly arranges international and domestic trade events.
The Market Access Initiative (MAI) scheme has been implemented to play a catalytic role in promoting and exporting Indian goods and services. The scheme for the remission of Duties and Exported Products (RoDTEP) has also been implemented to support the Indian exporters.
The scheme also assists the respective export promotion councils in undertaking export promotion activities for their products. Similarly, through this scheme, the government helps focus export promotion programs on international regions such as the LAC, Africa, CIS, and the ASEAN economies.
THE FUTURE AHEAD
One of the key drivers of growth in the sports sector in India has been the Indian Premier League (IPL), a professional Twenty20 cricket league that has become one of the most popular sports leagues in the world. The league has attracted significant investment from both Indian and international companies, and has helped to promote the growth of other sports in the country. The sports sector in India has been growing rapidly in recent years, with increasing interest in sports such as cricket, football, badminton, and kabaddi. The Indian government has been actively promoting the development of sports infrastructure, with the aim of making India a sporting powerhouse.
The Australian government invests heavily in the sports sector, providing funding and support for sports development, infrastructure, and events. The country is home to several major international events such as the Australian Open (tennis), the Melbourne Cup (horse racing), and the Sydney to Hobart Yacht Race. Australia have a strong interest and investment in sports, with a diverse range of sports played and supported in both countries. The scope of the sports sector is growing in both countries, with increasing investment in infrastructure, talent development, and international events. The sports sector in both India and Australia has been growing rapidly in recent years, driven by increased interest in sports, rising income levels, and government support for the development of sports infrastructure. Australia has a long-standing sporting culture, with a significant number of Australians participating in sports and outdoor activities. The country has a strong sporting infrastructure, with world-class stadiums, training facilities, and coaching centres.