Sports have an important role to play in moulding and shaping communities to the highest levels of nation building by channelizing and harnessing energy of the youth. The Indian sports industry has expanded rapidly over the years and exhibits a thriving potential in the future for all stakeholders of the sports ecosystem. Being the cornerstone of sports, infrastructure is of paramount importance for the overall growth of the sports industry. The right kind of impetus to sports can manifest sports as a stimulus for economic development in a developing country like India where the scope of harvesting the demographic dividend is very high. The present study aims to critically analyse government spending on sport with specific focus on sports infrastructure. It summarises that though India houses more than a hundred sports facilities fulfilling international standards of sports infrastructure, in addition to numerous government-owned and other sporting facilities, these facilities are largely neglected and ignored in terms of utilisation and maintenance. Further, recommendations have been given to revamp the sports infrastructure and the sports sector as a whole into a productive segment of the Indian economy. There are important lessons that India can learn from the benefits of sports in general and sports infrastructure in particular, realised by nations such as China, Australia, and the United States which have invested aggressively in related infrastructure in the form of grass-roots development by building community sports infrastructure and tightly integrating sports infrastructure into the education system by providing athletics with facilities across schools, colleges and universities. The study concludes that though India has witnessed a spurt of growth in sports infrastructure development in recent years, a lot still needs to be done in this direction.