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Introduction

The Union Budget 2026-27 formally recognized the ‘Orange Economy’, the creative sector driven by ideas, culture, and intellectual property as a vital engine for growth. By focusing on sectors like AVGC (Animation, Visual Effects, Gaming, and Comics), the government aims to leverage India’s cultural capital to drive high-multiplier employment and global soft power.

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Economic Significance of the Orange Economy

• Employment Generation Engine: The creative sector acts as a massive sponge for India’s youth, absorbing talent that traditional manufacturing may struggle to accommodate.
  Eg: The AVGC sector alone is projected to require nearly 2 million professionals by 2030.
• High Multiplier Effect: Large-scale creative ventures, such as the concert economy, stimulate secondary growth in tourism, transport, and hospitality.
  Eg: The Economic Survey 2025-26 describes live entertainment as a high-multiplier activity that supports urban service growth.
• Export of Soft Power: Indian films, music, and digital content are expanding India’s global cultural footprint, turning creativity into a sustainable export.
  Eg: The media and entertainment sector was valued at an estimated ₹2.5 trillion in 2024, showcasing its pillar status in the services economy.
• Innovation and IP Creation: The shift from service outsourcing to original intellectual property (IP) creation builds long-term economic resilience.
  Eg: The formal recognition of the sector aims to transition India from a global back-office for VFX to a hub for original content and gaming IP.

Challenges Faced by the Sector

• Critical Talent Shortage: Despite demand, there is a lack of multidisciplinary professionals who can blend technical AI skills with creative ideation. 
• Inadequate Venue Infrastructure: Scaling the “concert economy” is hindered by a lack of world-class venues and complex multi-window regulatory hurdles.
• Intellectual Property Theft: Weak enforcement of IP rights and rampant digital piracy often erode the commercial value of creative works.
• Limited Early Exposure: Until recently, creative fields were viewed as “risky side pursuits,” leading to a redundant and outdated training curriculum.
• Funding Gaps for SMEs: Creative startups often lack “durable assets” to use as collateral, making traditional bank financing difficult to access.

Measures to Harness Potential

• Mainstreaming Creative Skills: Integrating creative technologies into the foundational school curriculum to democratize access to the creator economy.
  Eg: The Budget proposes Content Creator Labs in 15,000 secondary schools and 500 colleges through IICT Mumbai.
• Regional Hub Development: Establishing centers of excellence in neglected regions to address talent gaps and promote regional cultural exports.
  Eg: The proposal for a new National Institute of Design (NID) in eastern India aims to strengthen regional design education.
• Leveraging Emerging Tech: Embedding AI and immersive media as infrastructure for the creative sector to enhance global competitiveness.
  Eg: The AI Mission and National Quantum Mission are identified as key pillars to support the Orange Economy’s growth.
• Formalizing Regulatory Frameworks: Streamlining the licensing process for events and content to reduce the “bureaucratic friction” that plagues creators.

Conclusion

The 2026-27 Budget reflects a “duty-driven” approach, transitioning the Orange Economy from the periphery to the fiscal mainstream. The success of this shift depends on whether India can move beyond being a “factory of creative services” to becoming a “global laboratory of creative innovation.” By investing in foundational skills and institutional infrastructure, India is set to lead the world’s most vibrant creative revolution.

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