Union Budget 2026: What Is Orange Economy? India’s Creative Industries, Growth Opportunities

Union Budget 2026 highlights India’s Orange Economy, aiming to boost creative industries like media, design, AVGC, and cultural sectors. Learn how FM Sitharaman’s proposals will create jobs, support startups, and foster innovation.

In the Union Budget 2026–27, Finance Minister Nirmala Sitharaman announced a major push to strengthen India’s creative industries, collectively referred to as the “Orange Economy.” The initiative aims to generate future-ready employment, encourage innovation, and position India as a global hub for creativity-led growth across culture, media, entertainment, and design.

What Is Orange Economy?

The Orange Economy encompasses industries that derive value primarily from creativity, ideas, and cultural capital, rather than physical products. The term “orange” reflects its association with art, culture, and creative expression. Key sectors include media, entertainment, design, intellectual property, and cultural tourism.

Focus On AVGC Sector And Creator Jobs

Highlighting the fast-growing Animation, Visual Effects, Gaming, and Comics (AVGC) sector, Sitharaman noted that it is projected to require nearly two million skilled professionals by 2030. To meet this demand, she proposed government support for the Indian Institute of Creative Technologies (IICT), Mumbai, to establish AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges across India. This initiative is expected to nurture a new generation of creators, boost startups, and expand employment opportunities in digital and creative fields.

Economic Survey Backs Creativity-Led Growth

The Economic Survey 2025–26 identified creativity-driven sectors as key engines of employment, urban services, and tourism. It highlighted that industries rooted in ideas, artistic expression, and cultural capital, rather than physical goods, hold immense growth potential under the Orange Economy framework. However, the Survey also flagged challenges such as limited venues, skill gaps, and regulatory hurdles, stressing the need for policy support to help the sector scale sustainably.

Strengthening Design Education Nationwide

As part of the broader creative push, Sitharaman announced plans to establish a new National Institute of Design (NID) in eastern India. She emphasised that while India’s design sector is expanding rapidly, there remains a shortage of trained designers, making targeted skill development and institutional expansion essential.

Building On the Orange Economy Vision

The Budget proposals build directly on themes outlined in the Economic Survey, which argues that sectors spanning culture, media, entertainment, design, and intellectual property can emerge as long-term drivers of economic growth. By investing in skills, education, and creative infrastructure, the government aims to unlock the full potential of India’s Orange Economy and create sustainable, high-quality jobs for the future.