India's sports equipment manufacturing faces structural problems, hindering export potential and global competitiveness
India's sports equipment manufacturing sector, despite being labour-intensive, contributes only about 0.5% to the global trade, indicating significant under-representation. The industry is geographically concentrated in centers like Jalandhar and Meerut, dominated by MSMEs, and relies on artisanal skills, limiting scaling and adoption of new technologies. Indian firms face a 15% cost disadvantage compared to peers in China and Pakistan due to higher input prices, inefficient logistics, and limited economies of scale. Key issues include reliance on imported specialized components, high import duties, and lack of internationally recognized testing and certification facilities. The article suggests rationalizing import duties, providing fiscal support, establishing testing centers, investing in local raw materials, and building strong domestic brands to boost exports and global presence.
Key Points
- India's sports equipment manufacturing sector is underperforming globally, contributing only 0.5% to world trade.
- Structural issues like high input costs, inefficient logistics, and lack of advanced manufacturing capabilities lead to a 15% cost disadvantage for Indian firms.
- The absence of internationally recognized testing and certification centers hinders market access and innovation.
- Recommendations include rationalizing import duties, fiscal support, establishing testing centers, and promoting domestic brands.
- The industry is concentrated in specific regions and dominated by micro, small, and medium enterprises (MSMEs).
Exam Facts
- India's contribution to global sports equipment trade: 0.5%.
- Cost disadvantage for Indian firms: 15% compared to China/Pakistan.
- Report mentioned: 'Realising the export potential of the sports equipment manufacturing market in India' by NITI Aayog and FED.
- Key manufacturing centers: Jalandhar (Punjab) and Meerut (Uttar Pradesh).
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