India's Creative Economy: Benefits & Challenges

Table of contents

India’s journey from ancient metallurgy to space missions has always been guided by creativity and innovation. As the country aspires to become a $5 trillion economy, its creative economy—spanning arts, crafts, software, and grassroots innovations—emerges as a potential economic driver multiplier.

Global Creative Economy: Status

Indicator	India	Global
Creative Exports (2019)	$121 billion (services: $100B, goods: $21B)	$2.1 trillion total (services + goods)
Employment Share	8% of the workforce	50 million jobs globally
Top Creative Sectors	Design (87.5%), Crafts (9%), Software, Films	Software (41.3%), R&D (30.7%), Ads (15.5%)
Export Growth	20% growth in 2023	29% (services), 19% (goods) since 2017

Benefits of India’s Creative Economy

Job Creation and Income Generation: Creative industries contribute nearly 8% to India’s total employment, offering diverse opportunities in sectors such as film, music, design, and digital media.
Economic Contribution and Export Growth: India’s creative economy had an estimated market size of $36.2 billion in 2019 and accounted for $121 billion in exports.
Tourism and Cultural Promotion: Events like the International Film Festival of India and art exhibitions boost tourism revenue, supporting India’s $28.9 bn industry and enhancing its global cultural presence.
Urban Revitalisation: Creative hubs in cities such as Jaipur and Mumbai are transforming urban areas, boosting property values by up to 30% and attracting significant investments.
Education and Skill Development: NID and SPIC MACAY are cultivating a skilled creative workforce through specialised education and cultural awareness programs in schools and colleges.
Digital Growth: India’s animation & gaming industries are thriving, with the animation market projected to reach USD 24.48 bn by 2032 and the gaming sector anticipated to hit USD 9.2 bn by 2029.

Challenges of India’s Creative Economy

Market Concentration: A few dominant players control significant portions of some creative sectors, stifling competition and limiting opportunities for smaller firms.
Digitalisation Pressures: Rapid digitalisation raises issues related to fair competition, market dominance, and accessibility within creative industries.
Artificial Intelligence Concerns: While AI enhances productivity, it raises serious concerns about content quality, copyright violations, data privacy, and the monopolisation of digital platforms.
Creativity-Innovation Disconnect: India has abundant creative potential but often fails to convert this into scalable innovation and commercial products.
Neglect of Grassroots Innovation: Investments in grassroots innovation are minimal compared to sectors like climate tech, which received $2,853 million in 2023.

Strategic Government Interventions to Catalyse India’s Creative Economy

$1 Billion Creative Economy Fund: This fund will be established via Public-Private Partnership to boost investment, startups, and innovation in creative sectors.
Indian Institute of Creative Technology (IICT), Mumbai: ₹400 crore allocated to establish India’s first dedicated institute for creative skills and capacity building.
Startup India: Catalyses entrepreneurship by providing financial support, incubation, and access to global markets, fostering startup growth in design, content, and media.
Atal Innovation Mission (AIM): Serves as a nationwide innovation framework with Atal Incubation Centres (AICs) and Atal Tinkering Labs (ATLs) that promote innovation in art-tech and edutainment.
National Innovation Foundation (NIF): Champions grassroots creativity by identifying, supporting, and scaling traditional knowledge systems, local crafts, and frugal innovations across rural India.
UNESCO Creative Cities Network (UCCN): Jaipur, Varanasi, and Srinagar are recognized for their cultural assets, boosting tourism and local economies.
Zonal Cultural Centres (ZCCs): Seven ZCCs in India organise festivals, workshops, and exhibitions to bridge the creative divide between rural and urban areas while empowering traditional artisans.
National Creators Award (2024): A platform recognising India’s digital storytellers and artists, while encouraging youth participation in creative sectors like animation and gaming.

Key Actions to Strengthen India’s Creative Economy

Reframe the National Innovation Strategy: Integrate creativity at all levels, ensuring the innovation ecosystem aligns with India’s $5 trillion economy vision.
Foster Inclusive Creative Ecosystems: Establish a supportive environment that links traditional arts and grassroots creativity with modern innovation, backed by robust institutional frameworks and funding.
Bridge the Creativity-Innovation Gap: Increase investments in grassroots innovation prototypes to enhance commercialisation and national impact.
Strengthen Intellectual Property (IP) Protection: Reform IP laws to protect Indigenous and community innovations and boost participation in the creative economy.
Promote District-Level Innovation Models: Launch a “One District, One Innovation” initiative to highlight regional strengths and promote local enterprise.
Leverage Civil Society and Institutional Networks: Enhance GIAN’s role in scouting and scaling local innovations in rural and semi-urban India.

India’s creative economy, rooted in cultural heritage and driven by digital innovation, holds the key to inclusive growth and global competitiveness. Strategic investments, grassroots support, and IP reforms can turn creative talent into a $5 trillion economic asset and a global soft power tool.

Reference: The Hindu

PMF IAS Pathfinder for Mains – Question 165

Q. Despite talent and tradition, India’s creative sector lacks formal support. Examine the institutional gaps and propose reforms to strengthen creative entrepreneurship. (150 Words) (10 Marks)

Approach

Introduction: Write a brief introduction about the creative economy by mentioning recent facts & data.
Body: Examine the institutional gaps and propose reforms to strengthen creative entrepreneurship
Conclusion: Write a conclusion with a futuristic approach, such as strategic investments and reforms.