Brief Context
In News The Union Budget 2026–27, presented by the Finance Minister, placed India’s creative industries at the centre of a services-led growth strategy, marking a clear policy push towards the Orange Economy. What is the Orange Economy? The Orange Economy, also known as the Creative Economy is a knowledge-based sector where the value of products and services is derived from ideas, cultural capital, and intellectual property (IP) rather than physical goods.
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Syllabus: GS3/ Economy
In News
- The Union Budget 2026–27, presented by the Finance Minister, placed India’s creative industries at the centre of a services-led growth strategy, marking a clear policy push towards the Orange Economy.
What is the Orange Economy?
- The Orange Economy, also known as the Creative Economy is a knowledge-based sector where the value of products and services is derived from ideas, cultural capital, and intellectual property (IP) rather than physical goods.
- The term was coined by Iván Duque Márquez (former Colombian President) and Felipe Buitrago in their 2013 book, The Orange Economy: An Infinite Opportunity.
- The color orange was chosen because it is historically associated with culture, creativity, and identity across diverse civilizations.
- Globally, this sector generates over $2 trillion annually and provides nearly 50 million jobs.
Key Highlights from Budget 2026-27
- Content Creator Labs: The establishment of AVGC (Animation, Visual Effects, Gaming, Comics) labs in 15,000 secondary schools and 500 colleges nationwide.
- Institutional Support: These labs will be spearheaded by the Indian Institute of Creative Technologies (IICT), Mumbai, which is modeled after the IITs and IIMs.
- Financial Allocation: A dedicated grant of ₹250 crore has been set aside specifically for talent development in the AVGC sector.
- New National Institute of Design (NID): A new NID will be established in the eastern region of India through a “challenge route” to address the shortage of professional designers.
Why the Orange Economy Matters for India?
- According to the Economic Survey 2025-26, India’s media and entertainment sector was valued at approximately ₹2.5 trillion in 2024.
- Employment Engine: The sector employs roughly 8% of India’s working population and is a major source of jobs for youth and women.
- Soft Power: Strengthening the creative economy enhances India’s “soft power” by exporting original Indian IP and cultural content globally.
- Economic Contribution: India’s creative exports grew by 20% in 2023-24, earning over $11 billion.
- Democratization of Talent: Content creator labs aim to expand access to high-end creative tools beyond major metros, fostering talent in semi-urban and rural areas.
- India has structural advantages like a young population, rising urbanisation, increasing disposable incomes & rapid digital adoption.
Source: TOI