Syllabus: GS3/ Economy
In News
- At the inaugural WAVES Summit 2025 held in Mumbai, the Prime Minister underscored the creative economy as a critical lever for India’s future GDP growth, innovation, and inclusive development.
More About the News
- The Prime Minister announced the launch of the Indian Institute of Creative Technology (IICT), a National Centre of Excellence aimed at upskilling youth and fostering innovation in media, animation, gaming, and content creation.
- The IICT is being established by the Ministry of Information & Broadcasting in partnership with industry bodies FICCI and CII.
- The WAVES aims to unlock a $50 billion market by 2029, expanding India’s footprint in the global entertainment economy.
About Creative Economy (also called Orange Economy)
- The Creative Economy encompasses industries that rely on individual creativity, skill, and intellectual property (IP) to generate economic value. These include:
- Cultural industries: Music, film, theatre, dance, crafts, literature
- Creative industries: Advertising, fashion, design, architecture
- Digital creative sectors: Animation, VFX, gaming, XR (Extended Reality), OTT platforms, YouTube/podcasts, influencer content
- John Howkins is credited for popularising the term “creative economy.” The term “Orange Economy” was coined by former Colombian President Iván Duque and Minister Felipe Buitrago.
Current Status of India’s Creative Economy
- Economic Contribution: As of 2025, India’s creative economy contributes approximately $30 billion to the national GDP, employing about 8% of the workforce.
- Export Potential: Creative exports have surpassed $11 billion annually, encompassing sectors like film, music, design, and digital content.
- Global Standing: India ranks among the top countries in fintech adoption, mobile manufacturing, and startup ecosystems, providing a robust foundation for creative industries to flourish.
India’s Potential in the Creative Economy
- Demographic Dividend: Over 65% of India’s population is below the age of 35 which are the main driver for content creation, gaming, design, and short-format storytelling.
- Digital Infrastructure: India has the second-largest internet user base globally. Initiatives like Digital India, BharatNet, and 5G rollout are enabling digital entrepreneurship in rural and urban areas alike.
- Cultural Heritage: India’s diverse traditions, languages, art forms, and mythology provide rich content for global storytelling. Cultural exports like Bollywood, Indian cuisine, and yoga have created strong brand recall internationally.
Challenges
- Lack of IP awareness: Weak enforcement of copyrights, design patents, and royalties.
- Fragmented industry: Dominated by informal, unorganized sectors without formal recognition.
- Skill gaps: Training programs often lag behind fast-evolving digital tools and formats.
- Funding barriers: Lack of easy access to credit and grants for artists and creative startups.
- Limited rural participation: Urban-centric growth excludes rural talent and craftspeople.
| India’s Initiatives for Promoting Creative Economy – National Creators Award: Established in 2024 to recognize excellence in digital content creation across various platforms. – $1 Billion Creator Economy Fund: Announced to support content creators in improving skills and expanding to global markets. – National Handicrafts Development Programme (NHDP): Implemented by the Ministry of Textiles to develop and promote handicrafts. –Scheme of Financial Assistance for Promotion of Art and Culture: Provides financial support to cultural organizations and artists for preserving and promoting India’s rich cultural heritage. |
Source: TH
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