Why in the news?
Recently, Honorable highlighted India’s increasing role in the global creative economy at the World Audio Visual and Entertainment Summit. It focuses on the concept of an “orange economy” that stresses creativity, culture, and intellectual property.
What is the Orange Economy?
(i) The Orange Economy consists of economic activities that utilize creativity, culture, and intellectual property to create wealth and jobs. It is also called the creative economy.
(ii) It is an internet-facilitated economy that allows content creators and influencers to earn revenue from their creations. Examples of creator economy software platforms – YouTube, TikTok, Instagram, Facebook, Twitch, Spotify, etc.
(iii) India’s creator economy is projected to grow at an 18% Compound annual growth rate, rising from Rs 19 billion in 2023 to Rs 34 billion by 2026, according to Ernst & Young.
Wheels of Orange Economy in India
(i) Demographic Dividend: India’s young population is hyperactive on digital platforms and creative content, therefore demanding relevant goods and services.
(ii) Digital Revolution: The exponential growth of the internet and smartphone penetration has provided a huge online market for creative content, e-commerce related to creative goods, and digital services.
(iii) Startup Ecosystem: India’s growing startup ecosystem is playing a major role in the Orange Economy, with new-age startups in online gaming, ed-tech with innovative content, digital marketing, and content creation platforms.
(iv) Government Assistance: The Indian government is making efforts to attain the economic growth and employment generation potential of creative industries. Initiatives like Startup India and Digital India help the Orange Economy by creating innovation and digital infrastructure. Certain policies with the aim of supporting arts, culture, and media are also included.
(v) Globalization and Cross-Cultural Interaction: Higher worldwide exposure and need for Indian creative products (motion pictures, music, visual art, apparel) on foreign shores are improving economic value for such creative industries.
(vi) Shifting Consumer Preferences: Consumers have growing demands for exceptional, unique, high-quality creative products and services, both physical and virtual.
(vii) Technological Developments: Technologies such as virtual reality (VR), augmented reality (AR), blockchain (for digital ownership and NFTs), and video editing software are creating new possibilities for creative work and commercialisation.
Impact and Potential
The Orange Economy in India is a major and increasing contributor to the national employment and GDP. Although exact figures can vary based on methodology, estimates signal that the sector already contributes a large share to the economy. Also, it has the potential for considerable growth in the next few years. It provides opportunities for:
(a) Employment Generation: The creative sectors are employment-intensive and can create jobs at many skill levels.
(b) Innovation and Entrepreneurship: It supports innovation and yields good grounds for startups and small enterprises.
(c) Cultural Preservation and Promotion: It helps in conserving and showcasing India’s rich cultural heritage.
(d) Soft Power: Export of Indian creative content and cultural products enhances India’s soft power and global image.
Hurdles hindering growth of creative economy
(i) Digitalization challenges: Digital disparity, cybersecurity concerns, literacy, as the digital ecosystem plays an important role in the creative industry. E.g., accessing online platforms, digital art galleries, etc.
(ii) Rural Urban Divide: A sizeable 65%(approx) of all creative workers in India are in the urban areas.
(iii) India’s IPR regime: E.g., in India, it takes more than 55 months on average to dispose of a patent application, against China and the USA, where this time is less than half of that of India.
(iv) Inherent issues of the sector: Such as fragmentation of creative industries, ineffective market access and distribution, and lack of transparency in the selection process, etc.
(v) Traditional career preferences: Societal pressure in India to pursue conventional career paths like engineering, medicine, etc. Creative professions are seen as risky and unstable in Indian society.
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Way Forward
(i) Increasing Recognition of Indian Culture Globally: Promote Indian cultural and creative goods and services. But through the organization of events, trade fairs, and international festivals. E.g. Ministry of Culture’s Global Engagement scheme.
(ii) Improving Access to Finance: Credit guarantees schemes and crowdfunding for financing entrepreneurs and MSMEs in the creative sector.
(iii) Reforming Intellectual Property Rights Framework: Addressing problems of copyrights, intellectual property protection, and safeguarding the interests of creators and innovators.
(iv) Integrated Policymaking Institution: Forming a Specialized institution for Creative Industries on the lines of the UK (Creative Industries Council).
(v) Human Capital Development: Instilling digital skills, such as digital marketing and graphic design in young workers.
(vi) Artificial intelligence governance and policy frameworks: Policies should consider the digital divides. After that, aim to close the digital, knowledge, and physical infrastructure gap.
Conclusion
The WAVES summit portends a strategic move to unite the cultural heritage of India, its unique talent, and digital innovation into its global economic aim. It aligns with India’s vision to become a cultural superpower, and encourages sustainable, inclusive growth with the help of the creative economy, or orange economy.