The Indian industry must put in more efforts to develop the sports goods sector if India is to emerge as a world class provider of sports goods. This was the general consensus at the first-ever seminar of its kind on 'Business Opportunities in Exports of Sports Goods', jointly organised by the Sports Goods Export Promotion Council (SGEPC) and the Confederation of Indian Industry (CII) in the capital.

It is a matter of great concern that while India exports about 316 traditional sports goods to various destinations across the world including Australia, UK, Germany, USA, and France, the share of Indian exports constituted a miniscule one per cent of the global trade. This has necessitated the diversification of the sports goods industry. Hence, India should focus on new products like sports goods for ice-hockey, golf, hunting, fishing and taking advantage of the availability of the raw materials like plastics, leather, rubber and established engineering, forging and casting industry should go in for joint venture with the sports goods manufacturers from the developed countries.

Speaking at the seminar, Omar Abdullah, Minister of State for Commerce, pointed out that the industry needs to diversify its existing product range and go in for production of non-traditional items like ice-hockey accessories, hi-tech physical equipment, golf equipment and equipment for hunting, fishing, countering etc. "We also need to look at new markets and make concerted efforts to penetrate these markets," the minister added.

Emphasising that infusion of fresh capital as well as upgradation of technology being used by the industry was required, Abdullah said that perhaps forging joint ventures with manufacturers of developed countries is the answer. It is clear, he said, that the industry is yet to come to terms with the changing market requirements and the concomitant changes in technology and products. Product development as well as market development were complementary to each other and as the industry explored new markets, it would realise the need for new products, he said.

The minister agreed that the government needs to remove restrictions on the movement of raw materials and rationalise import duties for easy availability of raw materials for this sector. He also emphasised on the need to enhance R&D spending in sports goods sector and urged the private sector to support this effort.

The minister said he is aware of the problems being faced by the exporters of sports goods, particularly the availability of raw material. The minister also pointed out that there is a need to change the import duty structure so that the import of raw materials become cheaper. Some of the duty concessions extended to industries like leather and textiles also need to be extended to the sports goods industry, he added.

DK Mittal, Chairman of the Sports Goods Export Promotion Council (SGEPC) and Joint Secretary with the Ministry of Commerce, said the sports goods sector is a "Sunrise Industry" with high exports potential and provides the ideal diversification option for India's export basket. With the growing importance of health and fitness, this sector has immense potential to grow. Mittal said the Government is attempting a three-pronged strategy for increased export of sport goods which include:

• Holding seminars to create awareness
• Developing marketing linkages, and
• Designing schemes to encourage sports goods production.

It is worth mentioning here that sports goods and fitness equipment are two emerging winners in the global export market. It is estimated that by 2005, the combined global market for sports goods and fitness equipment would be US$20 billion. India with its existing 1500 large and small players in this sector, a 115 years old history of sports goods industry and abundant raw materials, could play a major role.

For export promotion of sports goods, CII proposed a five-pronged action plan:

• Identify few thrust products within sports goods and fitness equipment for production and export,
• Identify major markets for these goods,
• Launch a series of sports goods missions to identified markets to identify partners, technology transfers and buy back arrangements,
• Adopt a consortium approach for export promotion by involving international trading houses, and
• Continuously disseminate information on the potential of these sectors to attract more players in this field.

The global market for sports goods and fitness equipment is expected to double over the next five years, and India with its natural advantages in industries like leather, plastic, rubber, engineering, forging as well as sports goods could easily emerge as a major producer of sports goods in the coming times. Besides the efforts being made by the Council to promote the sports goods sector, there is an urgent need for greater participation of industry in the development of the sector. The Department of Commerce and Industry is also working for securing greater market access by leading trade delegations, participating in international fairs and conducting buyer-seller meets, and to make a headway in this direction, the Council has already identified a few thrust markets and thrust products to boost exports of sports goods.

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