Orange Economy in Budget Speech: What is it, how Government Plans to Boost it

India’s Union Budget 2026 has explicitly recognised the creative sector as an engine of growth by announcing targeted interventions for the “orange economy”.

About Orange Economy

• Definition: The Orange Economy refers to the Creative Economy, a developmental model where economic value is derived from ideas transformed into Intellectual Property (IP).
• The Name: The term was coined in the 2013 book Orange Economy and Infinite Opportunities because, in Western culture, the colour orange symbolises creativity.
• The Mechanism: The core of this economy is taking a creative spark—such as an idea for a book or a movie—securing the IP rights for it, and then monetising that idea.

Core Sectors and Components

• AVGC Sector: Animation, Visual Effects, Gaming, and Comics.
• Arts: Architecture, visual arts, and performing arts (dance, theatre, music).
• Media & Digital: Audio-visual content (movies, TV, radio) and digital services like video games.
• Heritage: Tourism and museums

Government Initiatives (Budget 2026)

• Vital Pillar: The Indian government has identified the Orange Economy as a vital pillar for future growth and plans to provide heavy funding to make India a global hub for creative content. 
• Key initiatives include:
  • Education: Establishing creator labs in 15,000 secondary schools and AVGC labs in 500 colleges.
  • Institutional Support: Providing government support to the Indian Institute of Creative Technologies.
  • Content Creation: Aiming to create world-famous content similar to the success of Chhota Bheem.

Strategic Importance- Soft Power and Resilience

• Soft Power: By exporting creative products, a country builds global influence. For example, South Korea’s K-Pop and K-Dramas have significantly boosted its GDP and international standing. India aims to do the same by branding Bollywood, Ayurveda, and Yoga more effectively.
• Job Creation: Unlike many manufacturing roles, creative work is difficult for robots to replicate, making it a sustainable source of human employment.
• Economic Stability: The creative economy is recession-resilient. During the 2008 financial crisis, for instance, people did not stop consuming art and entertainment.
• Case Study (J.K. Rowling): The success of Harry Potter illustrates how one idea can spawn books, movies, merchandise, and theme parks, creating an entire economic ecosystem.

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Key Challenges Faced By Orange Economy

• Valuation: It is difficult to objectively decide the monetary value of a song, painting, or idea.
• Financing: Banks are generally reluctant to provide loans based solely on an abstract idea or “unfinished” concept, as they prefer physical collateral.

Conclusion

The Budget’s focus on the orange economy reflects a strategic recognition of creativity as an economic asset. With the right institutional support, India’s creative sector can emerge as a major driver of employment, innovation and cultural influence.

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