India's sports economy hits ₹1.99 lakh crore in FY26, but gaps in funding, governance persist: KPMG
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India’s sports economy is estimated at ₹1.99 lakh crore ($21 billion) in FY26 and is expanding at an annual rate of 12-14%, according to a new report by KPMG India. However, the next phase of growth will depend on how effectively the country converts rising investments in infrastructure, professional leagues and athlete development into measurable sporting and economic outcomes.
The report, Strengthening India’s Sports Ecosystem: Status Assessment and Strategic Improvement Plan, identifies gaps in governance, funding, grassroots participation, sports manufacturing and infrastructure utilisation. It argues that India needs to move beyond measuring expenditure, facilities created and programme enrolments towards tracking participation, athlete progression, institutional performance and long-term impact.
Government sports allocation rises as private investment gains ground
The Ministry of Youth Affairs and Sports has been allocated ₹4,479.88 crore for FY27, while the Centre’s sports allocation has more than doubled over the past decade, the report said. Government initiatives such as Khelo India, alongside private academies, commercial leagues and technology platforms, have widened the ecosystem.
Yet cricket continues to dominate commercial activity, accounting for nearly 75-80% of the sports economy, according to the report’s overview. The Indian Premier League (IPL) has an estimated enterprise value of ₹1.97 lakh crore ($20.6 billion), demonstrating the commercial potential of professional sport.
Sports sponsorship and marketing crossed $1.95 billion (₹18,525 crore) in 2024, driven predominantly by cricket. KPMG said emerging leagues in football, kabaddi, hockey, chess and women’s sports offer opportunities to diversify revenues and broaden the industry’s appeal.
Funding gaps and infrastructure utilisation remain challenges
Despite increasing corporate interest, investment remains concentrated in commercially attractive sports, leaving grassroots programmes, women’s sports, para-sports and community initiatives facing funding gaps. KPMG recommends creating a national pipeline of investment-ready projects, encouraging multi-year corporate social responsibility commitments and developing blended-finance models.
Infrastructure presents a similar challenge. The report calls for a national registry of public, educational and private sports facilities to assess their location, condition, accessibility, pricing and utilisation. It also recommends prioritising the refurbishment and better use of existing facilities before committing resources to new construction.
Sports manufacturing, technology need sharper policy focus
India’s established manufacturing clusters, including Meerut and Jalandhar, could benefit from better testing facilities, quality certification, advanced materials and research and development. KPMG recommends targeted support to help smaller manufacturers improve productivity and compete in export markets.
The report also calls for professionalising sports federations, strengthening athlete welfare and integrating sports science, digital systems and talent identification.
Ultimately, KPMG argues that success should be measured by wider participation, transparent athlete pathways and better utilisation of facilities, alongside sport’s contribution to employment, tourism, manufacturing and economic growth.