Orange Economy

Why in News ?  At the inaugural World Audio Visual and Entertainment Summit (WAVES) 2025 held in Mumbai on May 1, 2025, Prime Minister Narendra Modi championed the Orange Economy as a key driver of India’s economic and cultural growth.

Relevance :  UPSC Pre & Mains

Prelims: Orange/Creative Economy/

Mains :GS Paper 1 (Culture, Geography), GS Paper 2 (International Relations, Soft Power), GS Paper 3 -Economic Growth and Job Creation

 Key Points of  PM Address:

Dawn of Orange Economy: PM heralded the rise of India’s creative economy, driven by content, creativity, and culture, calling it the “dawn of the Orange Economy.”

Global Cultural Influence: Highlighted the worldwide popularity of Indian films, food, and music, predicting music’s growing global appeal.

Economic Impact: Emphasized the creative economy’s potential to boost India’s GDP, with India emerging as a hub for film, digital content, gaming, fashion, music, and concerts.

Create in India, Create for World: Urged creators to tap India’s rich storytelling heritage to produce global content, leveraging thousands of years of stories.

Youth and Storytelling: Encouraged India’s youth to share the nation’s one billion untold stories with the world.

Animation Market Opportunity: Noted the $430 billion global animation industry, set to double in a decade, as a key opportunity for India’s animation and graphics sectors.

What is the Orange Economy?

The Orange Economy, also known as the creative economy, encompasses industries rooted in creativity, culture, and intellectual property. The term was popularized by Colombian economists Felipe Buitrago and Iván Duque in their book The Orange Economy: An Infinite Opportunity. The color orange symbolizes creativity, cultural identity, and vibrancy across cultures.

Sectors Included:

Arts and Crafts: Visual arts, theater, performing arts.

Media and Entertainment: Film, television, OTT platforms, music, digital content, publishing.

Technology-Driven Creativity: Gaming, animation, Augmented/Virtual Reality (AVGC-XR), software, AI-driven content.

Cultural Industries: Fashion, design, architecture, cultural tourism, advertising, photography.

Characteristics:

Driven by human creativity and innovation, often leveraging intellectual property.

Combines dreamers (creators), doers (entrepreneurs), and policymakers in a rich ecosystem.

High growth potential due to global demand for content and digital platforms.

Global Context:

• The global creative economy is valued at $2.25 trillion (UNCTAD), contributing 3% to global GDP and employing millions, especially youth.
• The animation industry alone is worth $430 billion, expected to double by 2035.

Significance of the Orange Economy for India:

GDP Contribution: India’s creative economy currently contributes $30 billion to GDP (1–2% of GDP) and employs 8% of the workforce. Creative exports exceed $11 billion annually, with a 20% growth in 2024.

Projected Growth: Mukesh Ambani, at WAVES 2025, projected India’s media and entertainment industry to grow from $28 billion to $100 billion in the next decade, creating millions of jobs and boosting entrepreneurship.

Rural and Small-Town Impact: Digital platforms like YouTube and OTT enable creators from small towns (e.g., Guwahati musicians, Kochi podcasters) to reach global audiences, fostering inclusive growth.

Government Support: Initiatives like the $1 billion creative economy fund, IICT, Skill India, and Startup India aim to skill youth and support startups, aligning with Atmanirbhar Bharat and Make in India.