Recent reforms aim to bring order and transparency to India’s fast-growing sports ecosystem, creating a more secure environment for commercial partners.
On the sidelines of India’s growing sports economy, many international companies have watched with interest but limited engagement. They have seen the packed stadiums, the rapid rise of digital sports consumption, and the deep talent base. But they have also seen a sector often held back by administrative uncertainty, fragmented governance, and unclear investment pathways.
That may now be changing.
Earlier in May 2025, the Ministry of Youth Affairs and Sports introduced a major revision to its Scheme of Assistance to National Sports Federations (NSFs) — a framework that governs how the Indian government funds its national sports bodies.
While previous updates focused mainly on adjusting budget limits, the latest changes are more structural. They aim to bring standardisation, accountability, and long-term planning into a system that has often struggled with inconsistency.
A market that’s scaling fast
India’s sports industry is currently valued at around $52 billion, according to industry estimates, and is projected to reach $130 billion by 2030. The sector is growing at a rate of 14%, led by increases in sports consumption, broadcasting revenues, participation, and merchandise sales.
Media and sponsorship segments alone are expected to reach $6.7 billion, while related industries such as sports technology and esports are expanding quickly. The Indian esports market, for example, is forecast to grow to $950 million by 2035.
Despite these figures, many international rights holders and brands have moved cautiously, citing governance and operational risk as primary concerns. The new reforms appear designed to address that.
What has changed
The revised assistance scheme introduces several measures aimed at professionalising how Indian sports federations operate.
- Federations with annual budgets over approx. $1.2 million (₹10 crore) must appoint a High Performance Director. This role is responsible for planning the technical development of each sport and must work to pre-defined Key Result Areas (KRAs).
- Every NSF is now required to submit a four-year strategic plan, aligned with the Olympic cycle, with annual budgets and milestones.
- At least 20% of each NSF’s annual budget must now be allocated to junior and youth development, including grassroots academies. These funds will be matched by the government.
- A further 10% must be earmarked for coach and technical staff development, including certification programmes, international courses, and workshops. Unused allocations will lapse.
- Quarterly sports science testing for athletes will be mandatory. Data must be uploaded to a central portal managed by the Ministry.
- NSFs can allocate up to 10% of their government funding to administrative staff, including hiring a CEO, legal counsel, finance managers and IT support, through open recruitment.
These rules are backed by detailed funding norms.
For example, the revised scheme increases the maximum financial support for hosting international tournaments in India to ₹2 crore (approx. $240,000).
The salary cap for chief national coaches rises from ₹5 lakh to ₹7.5 lakh per month (approx. $6,000 to $9,000), while other coaches may earn up to ₹3 lakh per month (approx. $3,600).
Dietary allowances for athletes have also increased, with senior athletes now eligible for ₹1,000 per day ($12), up from ₹690.
Could cricket act as the model?
If any example proves what can happen when governance, investment, and consistent competition align, it is cricket. The sport has evolved into India’s dominant commercial property, driven in large part by the Indian Premier League (IPL) — a tournament format that has generated global attention and capital since its launch in 2008.
The IPL’s media rights were most recently sold for $6.2 billion over five years to a mix of Viacom18 and Disney Star, putting its per-match value on par with some of the world’s largest leagues. Sponsorships for teams and the league itself regularly include international names such as Dream11, Tata, Unacademy, CRED, and Saudi Tourism Authority.
Several investors with global portfolios have taken stakes in IPL franchises. RedBird Capital Partners, which also has investments in Fenway Sports Group and Toulouse FC, owns a minority stake in the Rajasthan Royals.
CVC Capital Partners, known for its involvement in Formula 1 and rugby, owns the Gujarat Titans. Indian conglomerates like Reliance Industries (Mumbai Indians) and the JSW Group (Delhi Capitals) also view team ownership as a long-term commercial and branding strategy.
Cricket’s success has not happened by chance. It benefits from a strong national federation in the Board of Control for Cricket in India (BCCI), a clear competition calendar, significant private sector involvement, and a fan base that has adapted to digital platforms.
The government’s recent changes to the NSF structure appear to be borrowing from this playbook. Though not designed to replicate the IPL model across all sports, the reforms create a framework where other disciplines can become structured, investable, and scalable in similar ways.
Clearer paths for commercial involvement
These reforms, though bureaucratic in structure, have commercial implications.
For broadcasters and OTT platforms, a more structured and monitored athlete development pipeline means greater clarity on content planning and talent visibility. For brands, transparency in funding and governance increases the appeal of long-term sponsorships. For sports tech firms, the mandated use of centralised digital systems creates new integration opportunities.
The inclusion of financial reporting, mandatory planning, and performance benchmarks across federations also signals a change in how the Indian government intends to oversee sport. While the Ministry is not introducing direct funding for private leagues, it has publicly stated its role as a facilitator between NSFs and corporate investors.
A platform for long-term growth
India’s ambitions in sport extend beyond domestic development. The country is expected to make a formal bid for the 2036 Olympic Games, and these reforms are part of that larger roadmap.
For companies looking to enter or expand in India, the updated NSF scheme reduces several of the practical risks associated with governance and operational delivery. It gives potential partners more visibility into how public funds are spent, how athletes are developed, and how federations are held accountable.
There are still challenges. Federations vary in capacity, and the impact of these changes will depend on how consistently they are implemented. But the direction of travel is much clearer; India wants its sports sector to be seen not only as large, but also as investable.
And now, it is beginning to build the systems to match that ambition.
