$1bn Funds on the Creative Economy

Syllabus: GS3/ Economy

In Context

• The Govt. has decided to set up a fund of $1 billion for the country’s creative economy.
  • And, the first Indian Institute of Creative Technology (IICT) is being established in Mumbai with funds of about 400 crore.

What is the Creative Economy?

• Also known as the orange economy, the creative economy refers to a knowledge-driven economic system where creativity and intellectual capital fuel economic activities. It includes:
  • Creation, production, and distribution of goods and services based on creativity.
  • Monetization of intellectual property in industries such as film, music, fashion, gaming, software development, and advertising.
• Key Characteristics:
  • Knowledge-Based Economic Activity: Creativity is developed through education, training, or inherited traditional skills.
  • Originality & Intellectual Property: Monetization of ideas through copyrights, patents, and trademarks.
  • Adaptability to Technology: Continuous evolution with AI, automation, and digital platforms.
  • Cultural and Economic Value Chain: Ideas are transformed into commercial products and services.

Significance of Creative Economy 

• Economic Contributions:
  • Global Revenue & Job Creation: Goldman Sachs predicts the global market will surge from $250 billion in 2023 to a staggering $480 billion by 2027 & and employ nearly 50 million people worldwide
  • Export Potential: Indian creative sectors, including Bollywood, IT services, fashion, and handicrafts, have huge export markets.
  • Spillover Effects: Boosts hospitality, tourism, and retail sectors.
• Social & Cultural Impact:
  • Youth & Women Empowerment: 23% of creative economy jobs are held by youth aged 15-29, and women hold 45% of creative occupations.
  • Cultural Diplomacy & Soft Power: Indian cinema, cuisine, yoga, and literature enhance global influence.
  • Sustainability & Green Economy: Creativity relies on intellectual resources rather than natural exploitation.
• Role in Innovation & Technology:
  • Promotes Startups & Digital Entrepreneurship: Growth of YouTubers, content creators, and AI-driven art.
  • Supports Technological Advancements: AI and virtual reality (VR) redefine art, gaming, and immersive experiences.

Challenges 

• Digital & Infrastructure Gaps:
  • Limited Rural Digital Access: Only 41% of rural India has internet connectivity, restricting digital content creation.
  • Cybersecurity Risks: Threats to digital assets, NFTs, and online platforms.
• Economic & Policy Barriers:
  • Weak Intellectual Property Rights (IPR): Patent processing in India takes 58 months, compared to 20 months in China.
  • Market Fragmentation: Lack of organized industry structure and distribution platforms for creative products.
  • Limited Access to Finance: Few MSMEs and startups in the creative sector receive formal credit or investment.
• Societal & Career Constraints:
  • Traditional Career Preferences: Creative fields are perceived as unstable compared to medicine or engineering.
  • Lack of Awareness & Recognition:  Limited global branding of India’s cultural and creative industries.

Way Forward: Strengthening India’s Creative Economy

• Expanding Indian Culture Globally: Promote Indian Films, Arts & Fashion in International Markets through trade fairs and cultural festivals.
  • Boost Exports of Handicrafts, Digital Art, and Animation.
• Financial & Policy Support: Launch Credit Guarantee & Crowdfunding Portals for creative MSMEs.
  • Provide Startup Incentives for Digital Content Creators & Game Developers.
• Strengthening Intellectual Property Protection: Faster Patent & Copyright Processing to protect creative works.
• Establishing Creative Hubs & Districts: Develop Creative Districts in Tier-2 & Tier-3 Cities to support local artists and startups.
• Skill Development & Digital Education: Integrate Digital Design, AI, and Digital Marketing Courses into higher education.
• AI & Emerging Technology Governance:  Develop AI-based copyright policies for digital art, music, and content. Use Blockchain for Securing Digital Creations & NFTs.

Source: IE