On May 1, 2025, while inaugurating the World Audio Visual and Entertainment Summit (WAVES) in Mumbai, Prime Minister Narendra Modi declared that this is the dawn of the ‘Orange Economy’ in India. Emphasising “content, creativity and culture” as its three pillars, he highlighted India’s growing prominence as a global hub of film production, digital content, gaming, fashion, music, and live concerts. He also underscored the immense potential of graphic design and animation industries to contribute to the economic prosperity of the nation. Moreover, he called this the perfect time to “create in India, create for the world”.
The PM’s remarks sparked widespread interest in the concept of the Orange Economy. This explainer seeks to address key questions surrounding the idea, its relevance to India, and its potential to shape the future of the country’s creative industries.
What is the Orange Economy?
The term orange economy is not a widely accepted academic concept. It is a popular term referring to the creative economy in the Latin American and Caribbean region. The term was first introduced in 2013 in an Inter-American Development Bank manual prepared by Felipe Buitrago Restrepo and Ivan Duque Marquez. They argue that the relationship between economy and culture is generally undefined, leading to numerous overlapping terms such as cultural industries, creative industries, leisure industries, entertainment industries, cultural economy, creative economy, etc.—all referring to the same or closely related economic fields.
To overcome this conceptual confusion, they introduced the term ‘Orange Economy’. In their definition, it refers to “the group of linked activities through which ideas are transformed into cultural goods and services whose value is determined by intellectual property.” The orange universe includes: i) The Cultural Economy and the Creative industries, which share the Conventional Cultural Industries; and ii) creativity supporting activities.
Buitrago and Duque emphasised that orange is associated with culture, creativity, and identity. They drew inspiration from ancient Egyptian, Indian, and Native American cultural associations with the colour and concept of orange.
Essentially, borrowing from the idea proposed by the Inter-American Development Bank, we can consider the orange economy as “the group of activities through which ideas are transformed into cultural and creative goods and services who value is or could be protected by intellectual property rights”.
Why did PM Modi emphasise the orange economy at WAVES 2025?
The creative economy is one of the fastest-growing economic sectors globally and is expected to contribute 10% of GDP by 2030. According to the United Nations Committee on Trade and Development (UNCTAD), “the creative economy is the sum of all the parts of the creative industries, including trade, labour and production”. These industries include advertising, architecture, arts and crafts, design, fashion, film, video, photography, music, performing arts, publishing, research and development, software, computer games, electronic publishing, and TV/radio.
Some estimates suggest that the global creative economy of today is worth $985 billion, constituting 3.1% of global GDP and generating 6.2% employment worldwide. The world is increasingly recognising the potential of the creative economy in driving sustainable development. Several UN agencies and other international organisations are at the forefront of promoting it globally.
In India, the creative industry is currently valued at over $30 billion and provides employment opportunities for nearly 8% of the working population. Some argue that the media and entertainment sector alone is worth $28 billion. Other studies suggest that Indian content creators already influence more than $350-400 billion in consumer spending. As the world’s most populous country, India offers enormous potential for growth in creative industries. Realising this opportunity, the Indian government recently announced a $1 billion fund to support and strengthen the country’s creative economy.
PM Modi’s emphasis on the orange economy is a strategic move, primarily driven by the sector’s potential to contribute significantly to India’s GDP. By drawing attention to it, he highlights its economic promise, export potential, and capacity to generate employment. Some also view this as a step toward formalising India’s creator economy, acknowledging its relevance as a structured and impactful industry.
How can the orange economy contribute to India’s economic growth?
Overcoming traditional limitations set by gender, caste, geography, class, and more, the internet empowers creators across social, regional, and economic divides. This opens immense possibilities in creative industries, enabling a revolutionary shift in India’s economic landscape. The entry into fields like music, film, or publishing no longer requires social connections or urban access.
As digital platforms like YouTube and Instagram democratise creative expression, talented individuals from rural areas, marginalised castes, or underrepresented genders can now produce, share, and monetise their content directly with global audiences. This is not only expanding the scope of the creative industry in the country but also creating a new layer of economic participation.
With nearly 1 billion smartphone users and around 900 million internet users, India offers a vast market for creative industries. The strong rural penetration of the internet allows content creation in vernacular languages, breaking linguistic barriers for both the audiences and creators. This further increases employment opportunities in creative fields while helping traditional arts and cultural forms in different regions find a global audience and market.
However, the growth of creative industries in India is not without challenges. A significant portion of the population, especially in rural areas, still lacks access to the internet and digital literacy. Despite widespread internet penetration, only about 38% of Indians are digitally literate. The lack of digital literacy not only limits participation in digital creative spaces but also hinders the full growth potential of India’s orange economy.
Only through focused efforts and effective policy interventions to bridge this digital divide can India fully realise the promise of its orange economy.
