Orange Economy

Orange Economy (Creative Economy) was highlighted in the Union Budget 2026 as a key driver of the economy. Read here learn more about it.

In the Union Budget 2026, the Union Finance Minister highlighted the Orange Economy, also known as the Creative Economy, recognising it as a key driver of employment generation, innovation, exports, and India’s global soft power.

In an era marked by digitalisation, platform economies, and cultural globalisation, the creative economy represents a shift from resource-intensive growth models to idea-driven, knowledge-based development, aligning with India’s demographic advantage and cultural diversity.

What is the Orange Economy?

The term “Orange Economy” was coined by former Colombian President Iván Duque Márquez and Felipe Buitrago in their 2013 book “The Orange Economy: An Infinite Opportunity”.

It refers to economic activities where ideas, creativity, and cultural expression are transformed into goods and services, with their value primarily determined by intellectual property (IP) rather than physical inputs.

Key Characteristics:

• Knowledge- and creativity-driven
• High reliance on copyrights, patents, trademarks, and design rights
• Low environmental footprint compared to traditional manufacturing
• Strong linkages with digital platforms and global markets

Sectors Included

• Audiovisual Media: Film, television, OTT platforms
• Live Entertainment: Music concerts, theatre, performing arts
• Gaming & Esports
• Animation, VFX, and Comics (AVGC)
• Design (industrial, fashion, graphic)
• Advertising, publishing, architecture, and cultural tourism

Key Budget 2026 Announcements for the Orange Economy

1. Boost to AVGC Sector

• Support to the Indian Institute of Creative Technologies (IICT), Mumbai
• Establishment of AVGC Content Creator Labs:
  • 15,000 secondary schools
  • 500 colleges
• This aims to build a nationwide talent pipeline, democratise access to creative skills, and position India as a global AVGC hub.

2. Strengthening Design Education

• Announcement of a new National Institute of Design (NID) in the eastern region, through the challenge route
• India currently has seven NIDs, all recognised as Institutes of National Importance
• This addresses regional imbalance and enhances India’s design-led manufacturing and services ecosystem.

Present State of the Orange Economy

Global Scenario

• The global creative economy generates over $2 trillion annually
• Employs nearly 50 million people worldwide
• According to UNCTAD, creative industries contribute between 0.5% and over 7% of GDP across countries
• Top performers: USA, UK, South Korea, Japan, France
• South Korea’s “Hallyu Wave” contributes over $12 billion annually to exports

India’s Position

• India’s creative industry size: ~$30 billion
• Employment share: ~8% of India’s working population
• Strengths include:
  • Rich cultural heritage
  • Large youth population
  • Rapid digital penetration
  • Growing global demand for Indian content (films, music, gaming)

However, India remains under-leveraged in global creative exports compared to its potential.

Global cases studies

South Korea: The Hallyu (Korean Wave) Model

South Korea deliberately adopted the creative economy as a national growth strategy after the 1997 Asian Financial Crisis, recognising culture as a strategic export.

Key Policy Interventions

• Ministry of Culture, Sports and Tourism (MCST) as a nodal agency
• Heavy state investment in:
  • K-Pop, K-Drama, Films
  • Gaming and Animation
• Strong copyright enforcement and global licensing
• Export-oriented content strategy via:
  • Netflix, YouTube, Spotify
• Integration of culture with technology and branding

Outcomes

• Hallyu exports exceed $12 billion annually
• BTS alone contributes $5 billion/year to GDP
• Korea ranks among the top 5 global gaming markets
• Tourism surge driven by pop culture

United Kingdom: Creative Clusters & IP Economy

The UK is among the earliest adopters of the creative industries framework, officially recognising it in the 1990s.

Key Policy Tools

• Creative Industries Sector Deal
• Tax incentives for:
  • Films, animation, VFX, video games
• Strong IP laws and enforcement
• Development of creative clusters:
  • London (media & advertising)
  • Manchester (gaming, TV)
  • Bristol (animation)
• Close academia-industry linkages

Outcomes

• Creative industries contribute £125 billion to GDP
• Employ over 2.3 million people
• UK is Europe’s largest exporter of creative services
• London emerges as a global creative hub

Japan: Cool Japan Strategy

Japan launched the “Cool Japan” initiative to globalise its cultural products and counter economic stagnation.

Key Focus Areas

• Anime, Manga, Gaming
• Fashion, cuisine (washoku), crafts
• Cultural tourism and branding

Institutional Framework

• Cool Japan Fund (public-private investment fund)
• Global promotion through:
  • Cultural festivals
  • International collaborations
• Integration with tourism and retail

Outcomes

• The anime industry is valued at $20 billion
• Japan ranks among the top exporters of cultural goods
• Global fandom for Japanese pop culture
• Rise in inbound tourism driven by cultural branding

Significance of Promoting the Orange Economy

1. Employment Generation

• High job creation potential, especially for youth, freelancers, and gig workers
• Inclusive growth opportunities beyond traditional sectors

2. Innovation and Knowledge Capital

• Encourages original IP creation
• Moves India up the global value chain, from content consumption to content ownership

3. Export Growth and Soft Power

• Enhances India’s cultural diplomacy
• Strengthens global presence through cinema, digital content, gaming, and design

4. Sustainable Growth Model

• Low resource intensity and carbon footprint
• Aligns with green growth and digital India objectives

Challenges

• Weak IP enforcement and monetisation
• Informality and income insecurity in creative professions
• Limited access to finance and global markets
• Skill gaps despite high raw talent availability

Way Forward

Policy Measures

• Strengthen copyright enforcement and IP monetisation
• Establish a National Creative Economy Mission
• Expand credit guarantee schemes for creative startups

Institutional Reforms

• Single-window clearance for film and creative projects
• Dedicated export promotion council for creative industries

Technology Integration

• Use AI and blockchain for IP tracking and royalty distribution
• Promote Indian content on global digital platforms

Global Collaboration

• Co-production treaties
• Creative visas and international festivals

Conclusion

By foregrounding the Orange Economy in the Union Budget 2026, the government has acknowledged creativity as a strategic economic asset, not merely a cultural pursuit.

Targeted investments in AVGC, design education, and creative infrastructure signal a shift towards idea-led, export-oriented, and inclusive growth.

If supported by strong IP regimes, skilling initiatives, and global market integration, the Orange Economy can emerge as a pillar of India’s future-ready economy, simultaneously generating jobs, boosting exports, and amplifying India’s soft power on the world stage.