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Summary
India’s new policy push for its ‘orange economy’ signals more than support for creative industries. If backed by the right infrastructure, finance and IP reforms, it could expand jobs, boost women’s workforce participation and empower marginalized voices.
A new term that entered the lexicon after India’s budget for 2026-27 was the ‘orange economy.’ Synonymous with the creative economy, it is emerging as a formidable engine of growth that transcends traditional industrial boundaries. Once viewed as niche, the intersection of culture, technology and intellectual property now accounts for roughly 3.1% of global GDP and 6.2% of all employment.
For a country like India, where recent budgetary initiatives recognize the strategic value of creative assets, the growth of this sector offers more than just economic expansion. It presents a data-driven pathway to greater gender parity and social inclusion.
The creative economy is inherently decentralized and knowledge-based, which makes it one of the most accessible entry points for marginalized communities and women. Unlike capital-intensive manufacturing or specialized technical sectors, creative industries rely on human capital and localized talent.
Global data attests to this ‘creative advantage’: women make up almost half the workforce in cultural and creative industries worldwide, ranking the sector fourth globally in terms of female employment. In many developing countries, the gender gap is not only narrowing within the creative sector, but also reversing in some sub-sectors.
This trend is being helped along by targeted interventions in regions with demographic profiles similar to India’s. For instance, the ‘Drone Divas’ initiative in South Africa trained women in drone operation for creative fields like cinematography and architecture, bridging digital and gender gaps in a male-dominated technical space.
Similarly, in Kenya, a ‘Wana Wake’ music performance series and all-women sound-engineering programmes demonstrated that when structural barriers (such as a lack of female mentors and role models) are addressed, women thrive in technical-cultural roles previously closed to them.
These examples provide a blueprint for steering India’s creative economy so that women are not just participants but leaders and business owners.
The creative economy also acts as a catalyst for social inclusion by bringing marginalized perspectives into the mainstream. Creative expressions often serve as a medium for social commentary and advocacy, allowing communities that have historically been sidelined to reclaim their identity and economic agency.
In post-apartheid South Africa, the creative sector has been instrumental in providing opportunities for non-Caucasian Africans, who now make up over 70% of the cultural workforce.
The emancipatory potential of the arts is particularly relevant for India’s diverse and youthful population. With nearly 50 million people employed in the creative sector globally, which is more than three times the number in the automotive industry, the scale of job opportunities is immense.
India’s policy focus on the Animation, Visual Effects, Gaming and Comics (AVGC) sector is a strategic move to capture this ‘youth dividend.’ By setting up specialized task forces and incentivizing creative labs, the government hopes to tap a dematerialized market where value lies in the digital code and artistic vision rather than physical raw materials.
This shift is crucial for social inclusion; it allows a digital artist in a Tier-2 Indian city to compete in a global marketplace.
However, with much of rural India lacking high-speed internet, the budgetary push must be paired with aggressive rural connectivity to ensure that the orange economy does not accentuate the digital divide or remain an exclusively urban phenomenon.
Another policy intervention required is a focus on ‘formalization’ to help creators register their businesses and gain access to growth resources and finance. Women in the crafts and fashion sectors often perceive their work as a side activity rather than a formal enterprise, and the transition from a hobby to a sustainable creative business is a significant hurdle for them.
Intellectual property is the currency of this economy. Yet, many artists struggle to navigate complex copyright laws.
The resilience of the creative economy further bolsters the case for its prioritization. During the 2008-09 global financial crisis, while world trade in goods saw a steep decline, that in creative services remained remarkably resilient. This stability is vital for social inclusion, as it provides a safety net for informal workers who are most vulnerable to economic shocks.
For India to harness this, our policy focus must shift to a holistic ecosystem approach that includes training in both creative and business skills, thus ensuring that ‘stage-ready’ artists also have ‘market-ready’ teams of managers and technical experts behind them.
Ultimately, the orange economy is not a zero-sum game; it is a feasible development option that aligns with several Sustainable Development Goals, including SDG 8 (decent work) and SDG 5 (gender equality). By investing in creative industries, India can turn its vast cultural heritage into a modern economic engine that rewards originality, while helping dismantle social and gender-based hierarchies.
As the world moves towards a more digitized and services-oriented future, countries that treat creativity as a strategic asset will be the ones that achieve the most inclusive and sustainable growth. The evidence is clear: an investment in creative endeavours is an investment in a more equitable society.
These are the author’s personal views.
The author is professor, economics and executive director, Centre for Family Business & Entrepreneurship at Bhavan’s SPJIMR.

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