Orange Economy: India’s New Growth Engine for Jobs, Innovation, and Investments

We all have used apps that keep us hooked on our phone for hours. Whether you’re watching your favorite series on Netflix, streaming music on Spotify, or scrolling through Instagram, these platforms have one thing in common, they generate value through creativity, intellectual property (IP), and digital content. This is exactly what the “Orange Economy” is all about.

Interestingly, the fruit orange has nothing to do with it. The term was popularised in 2013 by Colombian economists to describe industries where creativity, culture, and intellectual property are used to derive economic value.

The reasoning behind choosing the orange colour is psychological. It is associated with enthusiasm, creativity, attention, and playfulness. These qualities make the heart of film, animation, music, and design industries.

The orange economy has existed for decades, but it entered into the spotlight this year when the Union Budget 2026-27 was released. For the first time, the government officially recognised the creative economy and announced several initiatives. 

The importance of the orange economy is also evident globally, as it is becoming the world’s fastest-growing economic sector. According to UNESCO, the creative economy accounts to roughly 3.1% of global GDP and 6.2% of global employment.

So, what made the Orange Economy important enough to appear in the Union Budget? The answer lies in the rapid transformation in the ways people consume content today. While the creative economy always existed, Covid-19 pandemic became a turning point.

• Affordable smartphones and internet-connection increased consumption dramatically across India.

• Covid-19 pandemic gave a new opportunity to rethink how creative content could be produced and consumed when physical meetings were prohibited.

• Work from home gave people more time to spend on their smartphones which created unprecedented demand for digital content.

• Rising content platforms such as YouTube and Instagram gave millions of people the opportunity to monetise their creativity.

• India’s 2 million monetised content creators now influence over $350 billion in consumer spending, according to the BCG May 2025 report.

• Creator-led entrepreneurship such as Underneat by Kusha Kapila or BeastLife by Gaurav Taneja are using their existing fan base to launch & scale their own brands and products.

• Consumer expenditure on film tickets, gaming, and live concerts has grown significantly over the past few years. 

• The live entertainment industry in India has generated revenue of over 10,000 crores from ticket sales. It also boosted the hospitality & tourism sector.

• Artificial intelligence, cloud computing, and advanced tools have made the process of ideation to posting faster than ever.

• AI-assisted editing, VFX, and the rise of virtual creators has facilitated even a non-camera person to run a content creation page. 

• The government has recognised its potential and announced the development of creator labs across 15,000 secondary schools and 500 colleges in India.

With India being home to the world's youngest population, and a large share of them falling within the working-age group, this becomes a significant opportunity. But only if the workforce is ready to possess the required skills.

Unlike many traditional industries that rely heavily on formal degrees, the orange economy provides another gateway. This area places greater emphasis on the willingness to learn, create, and contribute. The orange economy can reshape India’s economic identity by:

• Focusing on becoming a global content exporter instead of a consumer. 

• Building Intellectual Property (IP) assets and generating royalty with the creation of original creative pieces.

• Propagating India’s culture, stories, and traditions globally can help in strengthening its soft power.

• Creating global brands in gaming and entertainment such as Disney or Nintendo.

The convergence of a growing Orange Economy and India’s large working-age population has the potential to become a major growth driver. However, the opportunity is also a double-edged sword with AI and digital tools making content creation quicker, it also raises concerns around originality, copyright, and monetisation.

The orange economy could transform India’s identity from being just a consumer of global content to a global exporter, provided it is backed by the right policies, skill development, and digital infrastructure. And for investors, it is a reminder that tomorrow’s wealth may not be built only through factories and physical assets but through creativity, innovation, and intellectual property.