JSA Prism | Sports Law | August 2025

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Telangana’s new sports policy: An invitation for industrialists to invest

July 2025 marked a pivotal moment for India’s sports sector, unlocking significant new opportunities for private enterprises. With the concurrent launch of the National Khelo Bharat Niti – 2025[1] and Telangana’s forward-thinking Telangana Sports Policy 2025[2], the Government has signalled a clear paradigm shift which is, sports development is no longer a State-run monopoly but a collaborative, investment-ready ecosystem.

For industrialists and corporate leaders, these developments are more than a policy update, they represent a strategic invitation to partner with the government, drive innovation, and capitalise on the immense economic potential of a burgeoning sports industry. Telangana’s framework, in particular, has been meticulously designed to attract and facilitate private investment, positioning the State as a premier destination for building the future of Indian sports.

A new playbook for investment: Key opportunities through the Telangana Sports Policy, 2025

The Telangana Sports Policy, 2025, is built on 5 (five) foundational pillars, each opening distinct and lucrative avenues for private sector participation. The government’s clear intent is to act as a facilitator, creating a robust framework where private expertise and capital can thrive.

Key investment opportunities

Infrastructure development through public-private partnerships

The policy explicitly calls for private investment to build and manage world-class sports infrastructure. Opportunities are available through flexible and proven models as mentioned below:

Lease-develop-operate (LDO): Long-term leases for developing and operating new, large-scale stadiums and sports complexes;
Operation and maintenance (O&M): Contracts to manage and upgrade existing state facilities, bringing in professional management and operational efficiency; and
High-performance academies on a Build-Operate-Transfer (“BOT”) model: The flagship Young India Sports Academy (“YISA”), a multi-disciplinary institution for elite talent, will be operated by a private integrator on a BOT basis. The State Government will support this venture by providing prime land at a nominal fee, making it a landmark opportunity for a corporate entity to take the lead in shaping India’s future champions.

Land allocation and commercial viability

A cornerstone of the State’s commitment to private partnership is its land allocation policy. For flagship projects like YISA, the Government will provide land at a nominal fee. Furthermore, for infrastructure developed under public-private partnerships models, the policy allows up to 30% of the site to be used for commercial activities, ensuring financial viability and attractive returns on investment for private partners.

Sports goods manufacturing Special Economic Zone

In order to attract industrial investment, the policy announces the creation of a dedicated manufacturing Special Economic Zone (“SEZ”) for sports goods. This initiative presents a prime opportunity for industrialists to establish production facilities within a purpose-built ecosystem. Investors can expect benefits such as streamlined regulatory approvals, state-of-the-art infrastructure, potential tax incentives, and logistical advantages, positioning Telangana as the premier hub for sports equipment and apparel manufacturing in India.

Who can invest? A sector-specific look at the sports SEZ: The creation of the sports SEZ is a strategic move designed to attract a wide array of industries. This purpose-built ecosystem is particularly attractive for the following:
- Apparel and textile giants: Companies specialising in performance wear, athletic apparel, and smart fabrics can leverage the SEZ to set up cutting-edge manufacturing units.
- Footwear manufacturers: The zone is ideal for producing specialised athletic footwear, from running shoes to cleats, catering to both domestic and international markets.
- Sporting goods and equipment producers: This is a key sector, inviting gym equipment industries to set up manufacturing for high-tech machinery, alongside producers of traditional equipment (like cricket bats and footballs), protective gear, and fitness accessories.
- Advanced materials and composites industry: Businesses involved in carbon fiber, advanced polymers, and other lightweight, high-strength materials will find a ready market for applications in modern sports equipment like rackets, bicycles, and protective gear.
- Wearable technology, data analytics, and electronics firms: SEZ and the broader tech-supportive policy provide a perfect base for companies developing and manufacturing fitness trackers, GPS devices, and performance monitoring sensors. This is a direct call to action for firms specialising in athlete data tracking and performance analytics, who can partner with YISA and Young India Physical Education and Sports University of Telangana (“YIPESU”) to pilot and scale their technologies.
- Corporate sponsorship and Corporate Social Responsibility (“CSR”) Integration: Aligning with the national ‘One Corporate-One Sport’ vision, the policy creates structured opportunities for corporations to sponsor teams, adopt districts, and fund specific sports, fulfilling CSR mandates while building significant brand value.

Fostering a sports technology hub

Building on its reputation as one of India’s leading technology and innovation hubs, Telangana’s policy provides robust support for sports-tech startups and established tech firms. This creates a vibrant Research and Development (“R&D”) environment and a direct invitation for companies to develop and deploy cutting-edge solutions. The policy’s commitment to creating a comprehensive State sports repository for athlete data and performance tracking creates an immediate and significant opportunity for companies specializing in performance analytics, artificial intelligence driven insights, and wearable technology.

Convergence of sports, pharma, and education: A new frontier for investment

Leveraging its status as India’s premier pharmaceutical and life sciences hub, Telangana’s policy creates a unique convergence between sports, healthcare, and education. The establishment of the YIPESU is central to this vision, creating a nexus for research, innovation, and commercial application.

This integration opens highly specialised and high-value opportunities for the following:

Pharmaceutical and life sciences companies: The policy’s focus on sports science, medicine, injury rehabilitation, and nutrition directly aligns with the strengths of the pharma sector. This creates a ready-made market for the following:
- Sports nutrition and nutraceuticals: Manufacturing and R&D of specialized supplements, protein-based products, performance nutrition products, and hydration solutions. This creates a direct avenue for protein and nutrition product manufacturing companies to cater to a high-demand market of elite athletes and a growing fitness-conscious population.
- Sports medicine and rehabilitation: Establishing advanced physiotherapy clinics, diagnostic labs, and sports-focused medical facilities in partnership with YIPESU and YISA.
- Biotechnology and R&D: Collaborating on research in areas like athlete genomics, performance analytics, and advanced recovery therapies, solidifying Telangana’s ‘Genome Valley’ leadership.
Educational institutions and ed-tech firms: YIPESU and the broader focus on integrating sports into the curriculum create opportunities for:
- private universities and colleges to establish partnerships for dual-degree programs, specialized courses, and research collaborations;
- ed-tech companies to develop digital learning modules for sports science, coaching certification, and athlete management; and
- skill development agencies to create and run vocational training programs for sports support staff, from physiotherapists to data analysts.

A stable and supportive environment: Alignment with national policy

A key advantage for investors is the seamless alignment between Telangana’s policy and the national framework. This synergy ensures a stable, predictable, and supportive regulatory environment, reducing investment risk and enhancing scalability.

Key de-risking factors

With the national policy targeting the 2036 Olympics, investments in Telangana’s sports ecosystem are part of a long-term, high-priority national mission.
The State’s sports repository will sync with the national sports repository system (NSRS), providing investors with standardised data for performance tracking and decision-making.
The move towards autonomous, professionally managed bodies like the sports hub of Telangana mirrors the proposed National Sports Governance Bill, 2025[3], ensuring transparency and professional administration, which are critical for investor confidence.

Conclusion

The Telangana Sports Policy 2025 is a clear and compelling business proposition. It is a testament to the ‘Telangana Rising’ vision, offering a practical blueprint for how public goals and private enterprise can achieve powerful results together. By creating an autonomous, professionally managed, and investment-friendly ecosystem, the government is inviting industrialists to be co-creators of a new economic sector. This is a unique opportunity to gain a first-mover advantage in a high-growth industry.

This Prism has been prepared by: