India’s sports goods and equipment manufacturing industry, largely concentrated in Punjab’s Jalandhar and Uttar Pradesh’s Meerut, is facing mounting cost pressures as the US-Iran war pushes up prices of petrochemical-based raw materials.
Manufacturers, suppliers, and experts say prices of key raw materials, including polyester used in sports apparel, plastics and composites used in lightweight rackets, helmets, and hockey sticks, and rubber used in shoes, balls, and other inflatables, have risen sharply.
The price of HDPE (high-density polyethylene), a polymer, has increased to as high as ₹160 per kilogramme now from ₹96-100 per kg before the war, said Ravinder Dhir, chairman of the Khel Udyog Sangh Punjab, a group representing sports goods manufacturers in the region.
The price of rubber has risen to ₹235 per kg from ₹180 per kg, and of zinc to ₹310 per kg from ₹225 per kg, added Dhir, who also runs his own sports equipment supply business.
As a consequence, manufacturers have seen margins come under pressure during the April-June season, when domestic demand dominates order books.
While some cricket equipment manufacturers have remained largely insulated, others said they are keeping inventory levels low and that order books are drying up.
"Amid rising petroleum product prices, manufacturers are producing strictly according to demand and keeping inventory levels low. Retailers, too, are placing orders only as required instead of maintaining large stocks,” said Sanjay Kohli, proprietor of BAS (Beat All Sports), a prominent Jalandhar-based cricket bat and accessories maker.
Impact on retail prices and demand
Manufacturers, particularly small and medium enterprises clustered in hubs such as Jalandhar and Meerut, are struggling to absorb rising costs. Many units operate on thin margins and are now being forced to either cut production or pass on the price increase to consumers.
“The April-June period sees the highest demand from domestic buyers, but this year, increasing input costs have hit the supply. The demand is there, but manufacturers across the board are finding it difficult to supply it,” said Dhir.
The prices of some commodities, according to manufacturers, such as low-density polyethylene, polypropylene, polypropylene bags (boris), and printing ink, had risen as much as 50% initially after the war. While they have since fallen, they remain about 30-33% above pre-war levels.
Experts estimate that petrochemical prices will stay higher for about a year. “Due to supply-chain disruptions, the blockade of the Hormuz strait, and the time taken to repair damage in several crucial petrochemical manufacturing units in West Asia will mean that it will take about a year for raw material prices to come down close to pre-war levels,” said Prashant Vashisht, senior vice-president and co-group head at credit rating agency Icra Ltd.
Retailers, meanwhile, report a gradual price increase in sports equipment and apparel, which could dampen demand, particularly among amateur buyers and institutions with fixed budgets.
“When global commodity prices rise, it translates into higher costs for retailers also. We are procuring some products at higher prices. We are anticipating that we will have to procure at higher prices than before,” said Sachin Gaikwad, manager at Champion Sports in Pune, a retail outlet for all sports goods.
Gaikwad said a set of high-quality badminton shuttlecocks, which was earlier priced at ₹1,050, cost ₹1,180 in April and May.
Impact on exports
India is a major exporter of sports goods, and any sustained increase in input costs may impact order volumes, especially from price-sensitive regions such as China, Taiwan and Pakistan.
India produces $183 million worth of sports goods annually and exports $2 billion worth of goods, according to Niti Aayog estimates.
Of India’s total $2 billion in sports goods exports, $275 million is from sports equipment, accounting for 0.5% of the global market share. While China remains the dominant exporter of these goods with a 40-50% global market share, other economies such as the US, Taiwan, Germany, and Vietnam also have significant shares, Niti Aayog said in its March 2026 report titled Realising the Export Potential of India’s Sports Equipment Manufacturing Sector.
About half of the sports goods made in India are for export, and their export value is often higher because they undergo value-addition, branding, and packaging before export. To be clear, “sports goods” is a broader term that includes both sports apparel and the equipment used in different games.
The country has an $8.1 billion export opportunity in the sector, with the potential to capture 11% of the world’s market share by 2036, according to the Niti Aayog report.
Sports apparel and footwear accounted for about 70% of the world’s sports goods market, worth $700 billion in 2024, with sports equipment accounting for 20% and accessories accounting for the remaining 10%, the report added.
"A sharp rise in the prices of plastic, polyurethane (PU) and polyester used in the manufacturing of sports goods has begun to weigh heavily on producers across India, squeezing margins and disrupting supply chains. Higher product prices could reduce competitiveness in international markets while also putting pressure on sales in the domestic market," said Sumnesh Agarwal, the chairperson of the Sports Goods & Toys Export Promotion Council (SGEPC), a leading manufacturer and exporter of sports goods and toys in India.