“We are the fourth-largest economy as I speak. We are a USD 4 trillion economy, and this is not my data—it’s IMF data. India today is larger than Japan. Only the United States, China, and Germany are currently ahead of us. If we stick to what is being planned and thought through, it’s just a matter of another 2 to 3 years before we become the third-largest economy.” These were the words of Shri B. V. R. Subrahmanyam, Chief Executive Officer, NITI Aayog, during the 10th Governing Council Meeting of the NITI Aayog, held on 25th May 2025.
A few weeks back, during the WAVE (World Audio Visual & Entertainment) summit held at the beginning of the month of May, Honourable Prime Minister of India, Shri Narendra Modi, emphasized the need for global companies to create content in India. In his words, “This is the right time for ‘Create in India, create for the world’. Global content will be respected here. I want to give confidence to everyone from outside that when you come here, you will get connected to India very naturally. India is becoming an orange economy. The Parsis, the Jews came here and became a part of our country. The strength of our culture is to respect the cultures of other countries.”
India, being the 4th largest economy and the fastest-growing economy in the world, the need to grasp the changing economic environment of the world is also a necessity. However, the question here is: What is the Orange Economy? The term used by the Prime Minister during the WAVE Summit. How can the Orange Economy help India achieve its economic goals? How can banks and financial institutions, which form the lifeline of any business, become the propeller of the newly formed economy?
To answer the questions asked above, one must understand what the Orange Economy is. The Orange Economy refers to economic activities that leverage creativity, culture, and intellectual property to generate wealth and jobs. Also known as the creative economy, it is facilitated by the internet, allowing creators and influencers to earn revenue from their creations. This ranges from music, film, design, fashion, and arts, to digital media, video games, and content creation. The creative economy is one of the fastest-growing economic sectors globally and is expected to contribute 10% of GDP by 2030.
Factors such as a large youth base who are more active on digital platforms, the exponential growth of the internet and smartphones creating a huge market for online creative content, India’s growing startup ecosystem, technologies such as virtual reality (VR), augmented reality (AR), blockchain (for digital ownership and NFTs), and video editing software, assistance from the Indian government in realizing the economic growth and employment generation potential of the creative industries are pushing the Orange Economy in India to new heights.
The Orange Economy in India is a foremost and growing contributor to national employment and GDP. Even though precise figures can fluctuate, approximations point to the sector already constituting a large share of the economy and having the potential for substantial growth in the next few years. The sector can provide employment at various skill levels, support innovation, offer fertile ground for startups, help preserve India’s culture and heritage, and promote the export of Indian creative content to the global market.
That being said, the creator economy has many challenges and drawbacks. The most critical among them is the proliferation of unethical, misleading, unverified, and inappropriate content on digital platforms. The incentive structure of online platforms, which focuses on the virality of content rather than its authenticity, is the key reason for such problems. This incentivization has led many creators to resort to sensationalism, misinformation, or even inappropriate content in pursuit of visibility and monetization. Fake news, deep fakes, character assassination, etc., have found a fertile ground in this environment, blurring the line between content creation and manipulation.
While the above challenge is the most dreadful and requires the utmost attention from the government and other regulatory entities, there are other issues as well. One such important issue is the lack of financial support to the sector, which also consists of many genuine and authentic content creators who are being denied financial assistance over various issues. Internationally, the creative economy is producing trillions in revenue and millions of jobs. But many individuals and small creative businesses remain underfinanced. They often don’t have traditional collateral, stable income, or credit history, which makes it difficult for them to access financial services. While these may seem like challenges, financial institutions such as banks can convert them into opportunities by exploring the niche market called the “Orange Economy.”
The major reasons contributing to the lack of financial assistance towards the sector and the ways in which banks/financial institutions can make a change are highlighted here. Through tailor-made products suiting the requirements of the creators, banks can uplift them to steer the economy.
Irregular income flows
The creator economy, though expected to play a significant role in the future of the world economy, does not have a fixed source of income. The people who are engaged in this economy generally earn in bursts, through advertisements, project payments, royalties, etc., which makes their cash flow unpredictable.
Through the use of alternative credit scoring based on platform earnings, flexible repayment schedules linked with the income cycle, etc., banks can, to an extent, overcome the issue.
Lack of traditional collateral
The creator economy, unlike the normal economy where business is run on a brick-and-mortar basis, runs on content on social media. The creators generally do not own any fixed assets like plant and machinery. This creates a huge problem for financiers since there will not be anything that can be used as collateral in case of default by the borrower.
Banks or financial institutions can mitigate the risk by introducing products that accept digital assets such as Intellectual Property Rights, Trademarks, Copyrights, etc., as collateral. Further, they can also provide unsecured small-ticket or micro-loans with risk-based interest rates.
Market Risk and Reputational Risk
Being an economy depending primarily on the mood of the people who are watching the content being shared, the risk involved is also unpredictable. The trends in the creative economy can change quickly, affecting both the demand and earnings of the creator. Further, any comments, content, or remarks made by the creator might affect the sentiments of society, resulting in reputational loss. This will also result in revenue loss.
Through periodic risk assessments and stress testing and by diversifying the product portfolio into various sectors within the creator economy, financial institutions can overcome the issue.
Lack of financial literacy
Content creators are available in every nook and corner nowadays. However, many are still unaware of the need for financial planning and business management. This results in unplanned expenses and investments, causing financial constraints.
Since the majority of content creators are financially illiterate, institutions can offer simple and hassle-free onboarding processes along with financial education tools and workshops. Partnering with creative hubs or incubators can also help banks build trust and understanding among creators.
Compliance & Fraud Risk
In general, the creative economy is boundaryless, which includes cross-border payments and income from informal sources as well. This results in AML and KYC-related threats.
This can be overcome by introducing strong transaction monitoring tools and KYC/AML systems capable of tracking digital footprints and platform data.
The dynamic, informal, and often fluctuating nature of the digital content ecosystem continues to pose a complex challenge in financing the creative economy. While creators will play a significant role in the future of the world economy, risks such as irregular income flows, lack of financial literacy, market risks, and compliance risks create hurdles in achieving financial goals. With tailor-made products and lucrative schemes, these sectors can be funded, but formalizing the economy is a significant task for the government and society as a whole. For India to upskill the sector and become a global leader in the Orange Economy, a comprehensive plan is inevitable. Let’s not forget what our former Prime Minister and world-renowned economist, Dr. Manmohan Singh once said: "No power on earth can stop an idea whose time has come. The emergence of India as a major economic power is one such idea."
References:
1. Orange Economy – Drishti IAS, dated 03rd May 2025
2. Rise of Orange Economy in India – StudyIQ, dated 05th May 2025, https://www.studyiq.com/articles/rise-of-orange-economy-in-india/
3. https://www.thehindu.com/news/national/pm-modi-at-waves-says-right-time-for-create-in-india-create-for-world/article69519204.ece The Hindu, 02nd May 2025
4. https://indiasworld.in/the-dawn-of-indias-orange-economy/ India’s World. 09th May 2025
5. https://www.santander.com/en/stories/orange-economy Santander, 15th September 2025
