Nirmala Sitharaman's Budget 2026 Speech Highlights 'Orange Economy' to Boost India's Creative Sector
In a significant move aimed at harnessing India's creative potential, Union Finance Minister Nirmala Sitharaman, during her Budget 2026 speech on Sunday, introduced the concept of the 'orange economy'. This initiative focuses on bolstering the country's creative industries, which span animation, visual effects, gaming, comics, design, and heritage tourism. The announcements come at a time when the creative sector is increasingly recognized as a vital contributor to economic growth and employment.
Key Budget Announcements for the Orange Economy
Sitharaman outlined several concrete measures to support the orange economy. She emphasized that India's Animation, Visual Effects, Gaming, and Comics (AVGC) sector is a rapidly growing industry, projected to require two million professionals by 2030. To address this demand, the Finance Minister proposed supporting the Indian Institute of Creative Technologies in Mumbai to establish AVGC content creator labs in 15,000 secondary schools nationwide and 500 colleges. This initiative aims to nurture talent from an early age and bridge the skill gap in the creative domain.
Additionally, Sitharaman highlighted the expansion of the Indian design industry, noting a shortage of Indian designers. She announced plans to establish a new National Institute of Design through a challenge route, specifically to boost design education and development in the eastern region of India. This move is expected to decentralize design expertise and foster innovation across the country.
Heritage and Culture Tourism Initiatives
When discussing heritage and culture tourism, the Finance Minister revealed plans to develop 15 archaeological sites into vibrant, experiential cultural destinations. These sites include Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace. Sitharaman explained that excavated landscapes will be opened to the public through curated walkways, while immersive storytelling skills and technologies will be introduced to enhance conservation labs, interpretation centres, and guides. This approach aims to make India's rich heritage more accessible and engaging for tourists, thereby boosting local economies.
Understanding the Orange Economy Concept
The term 'orange economy' was first popularized by former Colombian President Iván Duque Márquez and former culture minister Felipe Buitrago in their 2013 book, 'The Orange Economy: An Infinite Opportunity'. They defined it as the group of linked activities through which ideas are transformed into cultural goods and services, with value determined by intellectual property. The orange universe encompasses the cultural economy, creative industries, and creativity-supporting activities. The colour orange was chosen for its associations with culture, creativity, and identity across various religions and traditions.
In a 2024 interview with UN News, Buitrago elaborated that the orange economy includes activities such as audiovisual production, filmmaking, television, video games, music, crafts, visual arts, theatre, design, fashion, and digital expressions of communication. He described it as a powerful sector that represents cultural identity and drives economic growth.
Economic Context and Industry Reactions
These initiatives align with the findings of the Economic Survey 2025-26, which reported that revenue from gaming in 2024 was around Rs 232 billion, while animation and VFX amounted to approximately Rs 103 billion. Live entertainment accounted for over Rs 100 billion in 2024, with strong spillovers to tourism and urban services. Sanjoy Roy, a leading cultural entrepreneur and Managing Director of Teamwork Arts, which produces events like the Jaipur Literature Festival and Mahindra Excellence in Theatre Awards, praised the Finance Minister's announcement as "much needed and totally brilliant".
Roy noted that it has taken years, and perhaps events like Coldplay concerts, to awaken awareness of the creative sector's role in job creation and local economic contribution. He highlighted that just five days of the Jaipur Lit Fest contribute over Rs 100 crore to the local economy. Roy also emphasized the need for India to focus on exporting creative services and leveraging smart power, citing how festivals abroad can increase awareness and attract long-term tourist traffic to India.
Global and Indian Creative Sector Landscape
Globally, the creative economy is estimated to generate annual revenue exceeding $2 trillion and provide nearly 50 million jobs. In India, Union minister Hardeep Singh Puri stated in August 2024 at the launch of the All India Initiative on Creative Economy that the creative industry is now a $30 billion sector, employing nearly 8% of India's working population. He added that creative exports grew by 20% in 2023-24 alone, earning over $11 billion, with expectations of remarkable growth in the coming years.
However, challenges remain, as highlighted by Sanjoy Roy, including issues with permissions and clearances for event organizers. He welcomed steps towards single-window clearance systems, noting that states like Maharashtra and Delhi have been attempting to implement such mechanisms for a decade.
Other Colour-Coded Economies
The orange economy is part of a broader trend of colour-coded economic sectors. For instance, the green economy focuses on energy efficiency and sustainability, the white economy pertains to health and social care, the blue economy relates to marine resources, and the silver economy addresses the ageing population sector. Each represents a strategic area for development and investment.
Overall, Nirmala Sitharaman's Budget 2026 proposals for the orange economy mark a forward-looking approach to tapping into India's creative strengths, with potential to drive innovation, tourism, and employment across the nation.
