Union Minister for Information and Broadcasting, has announced a $1 billion fund to support digital content creators.

• This fund will be created in collaboration with the private sector to help creators upgrade their skills, improve production quality, and expand to global markets.
• Along with the fund, the government has sanctioned ₹391 crore to set up the Indian Institute of Creative Technologies (IICT). 

What is the Creator Economy?

• The creator economy refers to a digital ecosystem where individuals create and share content across various platforms.
• Unlike traditional media, where corporations control content distribution, the creator economy allows direct engagement between creators and their followers.
• Key Components of the Creator Economy:
• • Digital Platforms like YouTube, Instagram, Twitch and Twitter.
  • Monetization Methods like Ad Revenue, Sponsorships and Affiliate Marketing.
  • Community Engagement: Unlike traditional media, the creator economy thrives on direct engagement with audiences.

The Creator Economy in India

• The Scale of India’s Creator Economy:  India is home to over 80 million content creators, including influencers, bloggers, artists, and digital creators.
• Market Size: India’s Creator Economy market size was valued at US$ 976.0 million in 2023 and is expected to reach US$ 3,926.2 million by 2030, 
  • India’s creator economy is growing at an unprecedented rate, with some estimates predicting a 45% CAGR by 2028. 
• Economic Contribution: Creative occupations pay 88% higher than non-creative jobs and contribute about 20% to the nation’s Gross Value Added (GVA).
• Employment Contribution: India’s creative economy contributes nearly 8% of the country’s employment, far surpassing countries like Turkey (1%), Mexico (1.5%), South Korea (1.9%), and Australia (2.1%).
• Government initiatives like the AVGC Task Force (Animation, Visual Effects, Gaming & Comics) and the $1 billion creative economy fund support the sector.

Significance of the Creator Economy

• Democratization of Content: Anyone with internet access can create and distribute content without needing approval from traditional media houses. 
  • This has led to a diverse range of voices and perspectives in digital media.
• Economic Growth & Employment: The global creator economy is valued at over $100 billion and millions of creators are making a full-time income from content creation.
  • New job roles like social media managers, video editors, and brand consultants have emerged.
• Direct-to-Audience Business Model: Unlike traditional industries, where middlemen control distribution, the creator economy removes intermediaries, allowing creators to profit directly from their audience.
• Innovation & Technology: AI & Machine Learning help personalize content recommendations and Virtual & Augmented Reality are enhancing content experiences.

Challenges of the Creator Economy

• Platform Dependency: Creators rely on platforms owned by big tech companies, making them vulnerable to algorithm changes, demonetization, and bans.
• Income Instability: Unlike traditional jobs, creator earnings fluctuate based on views, engagement, and brand deals. Many creators diversify their income streams to maintain financial stability.
• Digital Divide: Unequal access to the internet and digital tools creates disparities, limiting opportunities for creators in rural and underserved areas.
• Digital Literacy Gaps: Many creators, especially in smaller towns and rural areas, lack the skills to effectively use digital tools and platforms, limiting their growth potential.
• Cybersecurity Risks: Creators face threats like data breaches, hacking, and online harassment, which can harm their reputation and financial stability.
• Mental Health & Burnout: Constant content creation, audience expectations, and social media pressure lead to stress, anxiety, and burnout. Many creators struggle with maintaining a work-life balance.
• Structural Bottlenecks: Issues like limited access to finance, weak intellectual property (IP) frameworks, and fragmented policymaking hinder growth.

Way Forward for Strengthening India’s Creator Economy

• Reduce Platform Dependency:  Develop Indian-owned and decentralized platforms to reduce reliance on foreign tech giants.
  • China developed its own platforms like WeChat, Baidu  and Kuaishou, reducing dependence on Western tech giants. India can follow suit by investing in Indian content platforms like Koo etc.
• Address Income Instability: Encourage diversified revenue models like memberships, courses, crowdfunding, and NFTs.
  • A 2023 report by Kalaari Capital found that out of 8 crore creators in India, only 1.5 lakh were able to monetise their work.
• Manage Mental Health & Burnout: Establish mental health support programs and promote sustainable work-life balance for creators.
  • YouTube’s “Creator Well-being Program” offers therapy and wellness resources, which other platforms should replicate.
• Formulate Targeted Policies: Develop sector-specific policies and legal frameworks to protect creators’ rights and earnings.
  • The Indian government’s AVGC Task Force (2022) recommended sector-specific policies, but no concrete framework exists yet.
• Remove Structural Bottlenecks: Improve access to finance, strengthen intellectual property rights, and create a unified policy body.
  • Many Indian content startups struggle due to weak Intellectual Property (IP) protections.
• Promote Digital Infrastructure & Accessibility: Improve internet connectivity, affordable data access, and digital tools for creators in rural areas.
  • According to the NSSO data, only 24% of rural Indian households have access to the high speed Internet, limiting opportunities for aspiring content creators.
• Bridging Digital Literacy Gaps: Launch nationwide campaigns to teach digital skills, content creation, and platform usage.
  • Digital India Initiative includes programs like Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) to train rural citizens.
• Mitigating Cybersecurity Risks: Enforce robust data privacy regulations to protect creators’ and users’ data.
  • The General Data Protection Regulation (GDPR) in the EU sets a high standard for data protection.

Conclusion

With WAVES 2025 and the new funding initiative, India is set to become a global hub for digital content creation and media innovation. These efforts will empower creators, boost the entertainment industry, and strengthen India’s position in the global digital economy.

DOWNLOAD PDF