Creative Industries as Growth Engines, India’s Creative Economy

Creative industries are sectors where value is created mainly from creativity, culture, technology, and intellectual property. These industries are not limited to art or entertainment; they are technology-driven and globally tradeable sectors. 

Creative Industries include Media and entertainment, Animation and visual effects (VFX), Gaming, Live cultural events and entertainment, Digital content platforms, Script, music, and audio-visual production. These industries generate value from ideas, stories, designs, and digital innovation. Because much of their output can be distributed online, they can reach global markets quickly and at scale.

Global Rise of the Creative Economy

Across the world, creative industries have moved from the margins to the mainstream of economic activity. 

• In many countries, they contribute between 0.5 percent and over 7 percent of GDP.
• Live entertainment and cultural industries also create strong linkages with tourism, hospitality, and urban services. 
• Cities and countries that invest in creative ecosystems improve their global image, attract investment, and strengthen partnerships.

Thus, creativity today is not just cultural expression; it is an economic strategy.

India’s Creative Economy

India’s creative economy is rapidly expanding and becoming a major pillar of growth.

• The media and entertainment sector was valued at approximately ₹2.5 trillion in 2024.
• Digital media accounts for around one-third of total sector revenues, reshaping how content is produced and distributed.
• High-growth segments include Animation and VFX (around ₹103 billion), Gaming (around ₹232 billion), Live entertainment (over ₹100 billion).
• The sector supports more than 10 million livelihoods directly and indirectly.
• Annual output stands at nearly ₹3 lakh crore.

This growth shows that creativity is no longer a side activity. It is becoming a structured, organised, and scalable economic capability.

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Creative Industries as Growth Engines

Creative industries are called growth engines because of following benefits: 

Employment Generation

• Creative industries create large numbers of jobs because they depend mainly on skills and talent. They provide work to artists, technicians, coders, designers, performers, and entrepreneurs. 
• At the same time, they also create indirect employment in areas such as tourism, event management, digital services, and urban businesses. 
• With a large young population, India can use these industries to generate jobs on a wide scale.

Export and Global Reach

• Digital platforms make it easier for Indian creative products to reach international audiences. Scripts, music, games, and visual effects services can be exported to global markets. This not only increases foreign exchange earnings but also strengthens India’s position in the global creative economy.

Urban and Tourism Linkages

• Live entertainment, festivals, and cultural events attract visitors and make cities more vibrant. Creative hubs encourage growth in hospitality, transport, retail, and other local services. In this way, the creative economy supports development at both the national and regional levels.

Soft Power and Global Visibility

• The Orange Economy helps transform India’s cultural heritage and creative talent into economic opportunity and global influence. By using modern platforms, Indian stories, art, and skills can reach audiences across the world, improving India’s image and cultural presence internationally.
• Creative industries therefore enhance both economic strength and diplomatic presence.

Government Initiatives for Creative Industries

Government has started following initiatives: 

• The government has introduced a national roadmap for the AVGC-XR sector, focusing on skill development, creation of original intellectual property, industry collaboration, and access to global markets.
• The Indian Institute of Creative Technologies (IICT) has been established as a national centre of excellence to provide industry-aligned training, advanced infrastructure, and startup incubation support.
• To build a long-term talent pipeline, AVGC Content Creator Labs are proposed in 15,000 secondary schools and 500 colleges across the country.
• The World Audio Visual and Entertainment Summit (WAVES) has been organised as a global platform to bring together creators, startups, investors, and policymakers for partnerships and deal-making.
• WaveX has been launched to support startup innovation through incubation, mentorship, and investor engagement.
• WAVES Bazaar has been created as a dedicated marketplace for scripts, music, comics, and audio-visual rights to facilitate co-production and cross-border collaborations.
• The Create in India Challenge aims to identify emerging creative talent and connect them with global platforms and opportunities.
• The government is also encouraging the development of regional creative hubs across cities to expand opportunities beyond a few metropolitan centres.

Overall, policy efforts are focused on strengthening skills, institutions, platforms, and global integration to make creative industries a major source of employment and economic growth.

India’s Creative Industry Challenges

• There is a gap between what students learn in educational institutions and the skills required by the creative industry.
• India still produces limited original intellectual property compared to major global creative economies.
• Regulations related to media, gaming, and digital content are spread across different authorities, creating complexity.
• Indian creative industries face strong competition from well-established global hubs.
• There is a need for better access to finance and stronger physical and digital infrastructure.

Way Forward

• Strengthen creative education and develop skill-training pipelines aligned with industry requirements.
• Encourage the creation and promotion of original Indian intellectual property.
• Provide tax incentives, funding support, and easier credit access for creative startups.
• Build global partnerships and promote co-production agreements with other countries.
• Develop creative industry clusters in tier-2 and tier-3 cities, not just in major metropolitan areas.