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Sports Industry

Sports Industry and Export In India

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 2019-20, India was the 24th largest exporter of sports goods in the world, accounting for 0.56% of the global exports of sports goods, indicating significant headroom for growth in the future.
India exports all kinds of sporting goods such as toys, recreational games, puzzles, video games, parlor 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.
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%. Major exported items are inflatable balls and accessories, nets, general exercise equipment, boxing equipment, toys and games, protective equipment, cricket equipment, sportswear, carrom boards, and hammock.
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. During the last decade (2010-22 to 2019-20), India has grown its competitiveness in exports of 'articles and equipment for table tennis, tennis, badminton, and similar rackets, with a thirty-fold increase in exports. In 2019, India's share in the global market for tennis products increased to 1.2%.
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. During 2021-22, the USA, the UK, Australia, Canada, Germany, and Netherland were among the top importers of Indian sporting goods. Sports goods exported to the USA have recorded significant growth of 48% to reach US$ 198.8 million, growing from US$ 134.7 million in the previous year. Similarly, exports to the UK, Australia, and Germany have increased by 42%, 32%, and 32%, reaching US$ 74.7 million, US$ 33.2 million, and US$ 32.8 million in 2021-22, respectively. 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.
As per India Exim Bank analysis, the UK is the largest importer of India's export of Tennis balls, inflatable balls, and other balls (excl. golf balls, and table tennis balls), followed by Australia and UAE in the same order of exports. For Festive article exports, USA is the major importer with significant share in the overall exports. UAE is one of the key importers of articles and equipment for table tennis, tennis, badminton, and similar rackets commanding a major share of the total exports. India's exports of Water Sports Equipment have significant demand from countries like Spain and Sri Lanka. India's exporters actively tap developing countries like Brazil, Mexico, South Africa, Chile, Columbia, Argentina, Nigeria, Peru, and Ecuador, which have significant demand for sports equipment and supplies.
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.
a) Market Development Assistance (MDA) Scheme
The MDA scheme works mainly to assist the exporters in export promotion activities in the international markets. 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.
b) Market Access Initiative
The main objective of the MAI scheme is to promote the export of Indian goods to international markets. Under this scheme, financial assistance will be provided to export & trade promotion organizations, national institutes, research institutes, exporters, etc. The parameters covered under the financial aid will be marketing projects, capacity enhancement, supporting statutory compliances, studies, research, project development, and supporting cottage and handicraft units in India.
Sports Goods Export Promotion Council (SGEPC)
The SGEPC is a Government of India sponsored organization that works towards the promotion of the export of Indian sports goods and toys. The council represents the leading manufacturers and exporters in the country. The main activities of the SGEPC are trade promotion, information dissemination, export statistics tracking and projection.

Source: India Brand Equity Foundation

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