All kinds of sports are being pursued but without any govt. assistance. If you go out into the farm belt in the northern states, you will find people pursuing
alot of the combat sports, but unfortunately these people are very poor, who work the fields during the day or do other menial work like drive trucks or busses and then take to bodybuilding or wrestling in their spare time. Its a miracle that they still manage to reach a world class status with all odds stacked high against them. States like haryana, punjab etc have given India some great wrestlers like
Dalip Singh Rana A.k.a 'Great Khali'(yes I know its fake but still)
Dara Singh,
Sushil kumar as well as some boxers that have bought India fame. I don't think the govt. will be making great investments in these states as the north has traditionally been considered the food growers for the nation. Probably why the the north lags far behind in literacy rates when compared with the South.