Union Finance Minister Nirmala Sitharaman presented the Budget 2026 this Sunday, and while there were many things brought up in it, one term that caught the attention of many was ‘Orange Economy’.
This year’s budget has a particular focus on manufacturing, creating incentives across various sectors to help strengthen India’s ability to produce goods fast and cheaply.
In her speech, though, Sitharaman brought up the concept of the orange economy that focuses especially on the creative sector, such as film, music, art, performances, design, and more.
Apparently, there is an increasing phenomenon of viewing creativity and cultural output not just as artistic pursuits but as engines of jobs, innovation and economic value, especially for a young, digitally native population.
What Is The Orange Economy?
On Sunday, February 1, 2026, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2026-27. In her Budget speech, she spoke about how there are plans to boost the country’s ‘orange economy’ and give aid to our creative industries.
Sitharaman said, “India’s animation, visual effects, gaming and comics sector is a growing industry, projected to require 2 million professionals by 2030. I propose to support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC content creator labs in 15,000 secondary schools all over the country and 500 colleges.”
She also added about the design sector, specifically bringing up how there aren’t as many Indian designers as there should be, saying, “I propose to establish, through a challenge route, a new National Institute of Design to boost design education and development in the eastern region of India.”
The Orange Economy refers to a segment of economic activity where economic, social, and cultural value is generated primarily from creativity, intellectual property, cultural expression and artistic ideas rather than physical goods and traditional manufacturing.
The term was created by former Colombian President Iván Duque Márquez and former culture minister Felipe Buitrago in their 2013 book, The Orange Economy: An Infinite Opportunity.
The colour orange was selected since it has heavy symbolism for creativity, culture and transformation, and the authors believed it fit a sector that puts emphasis on creativity, imagination and intellectual property rather than factories and other fixed assets.
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This focus is also based on the data presented in the Economic Survey 2025-26, which has noted how creativity-led domains, such as culture, media, entertainment and intellectual property, can potentially be a source of employment, tourism and urban services in India.
According to a press release published by PIB, the survey “noted that India’s media and entertainment (M&E) sector has emerged as a major pillar of the services economy, covering audio-visual production, broadcasting, digital content, animation, gaming, advertising and live entertainment.”
The press release by the Ministry of Information & Broadcasting also stated how “Over the past decade, the sector has shifted strongly towards digital and platform-based delivery, transforming revenue models, employment and value chains. Estimated at around ₹2.5 trillion in 2024, growth is driven by rising incomes, internet penetration, OTT expansion and AI-led innovation.”
Sanjoy Roy, a leading cultural entrepreneur and Managing Director of Teamwork Arts, was quoted by The Indian Express commending this move, saying, “It has taken years and, perhaps Coldplay, to bring about an awakening on the creative sector’s role in creating jobs and contributing to the local economy. More importantly, a creative economy is the basis for the innovation sector. Just five days of the Jaipur Lit Fest contribute over Rs 100 crore to the local economy.”
This is not a new phenomenon, and it’s high time that India starts to focus on this sector as an economy. Over the years, governments around the world have started to acknowledge these creative and cultural sectors as crucial parts of modern economies.
The fact that digital technologies are now making it easier to produce, distribute and monetise creative content globally has only led to it becoming more of a priority. In India’s context, a young demographic profile and rapid digital adoption make the orange economy particularly relevant to focus on.
Image Credits: Google Images
Sources: The Indian Express, The Economic Times, Business Today
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This post is tagged under: Niramala Sitharaman, Niramala Sitharaman finance minister, finance minister, niramala sitharaman budget 2026, niramala sitharaman budget, budget 2026, budget 2026 orange economy, budget 2026 tax, union budget, union budget 2026, Orange Economy meaning
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