What Is the Orange Economy? Why FM Sitharaman Highlighted It in Budget 2026

The Orange Economy is the economic sector comprising creative and cultural industries that generate value through intellectual property and cultural expression. Finance Minister Nirmala Sitharaman emphasised this sector in her Budget 2026 speech, recognising its potential to create jobs, boost exports, and strengthen India’s cultural influence globally. This article explains what to expect from Orange Economy India, and why it received particular attention in the Union Budget 2026.

What Is the Orange Economy?

The Orange Economy, also known as the creative economy, refers to economic activities centred on creativity, culture, and intellectual capital. It comprises industries that transform ideas and cultural heritage into goods and services with commercial value.

Key components of the Orange Economy include:

• Arts and Heritage: Traditional handicrafts, textiles, visual arts, performing arts like music, theatre, and dance, as well as museums and cultural preservation activities.
• Media and Entertainment: Film production, television and radio broadcasting, music recording, and publishing of books and journals.
• Design Services: Fashion design, graphic design, architecture, and advertising that provide creative inputs to other industries.
• Digital Creative Sector: Animation, video games, digital content creation, and new media technologies.

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Why FM Sitharaman Highlighted Orange Economy in Budget 2026

Finance Minister Sitharaman’s focus on the Orange Economy in the 2026 Union Budget is driven by its alignment with India’s broader economic and cultural goals. The key reasons for this emphasis include:

• Strong Economic Contribution and Policy Support: The media and entertainment sector, a major part of the Orange Economy, is also a key pillar of India’s services economy. It was valued at an estimated ₹2.5 trillion in 2024. To harness its rapid growth, the budget included measures such as improving access to finance and strengthening intellectual property (IP) rights.
• High Potential for Job Creation: India’s animation, visual effects, gaming, and comics (AVGC) sector has immense capacity to boost employment, especially for youth and women. The budget specifically noted that this sector is projected to require nearly 2 million professionals by 2030.
• Focused Skill Development: To realise the potential of the Orange Economy, the budget proposed to establish AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges. Supported by the Indian Institute of Creative Technologies, Mumbai, this initiative could foster specialised skills and unlock new career opportunities for youth.
• Growth of Soft Power and Exports: Promoting cultural exports like Indian films, music, and crafts helps strengthen India’s global influence. A thriving creative sector boosts the country’s soft power and can lead to increased international demand for its cultural products, supporting trade and diplomatic relations.

Also Read: 7 Home-Based Businesses You Can Start with a Business Loan

To Conclude

The Orange Economy represents a vital sector for India’s economic diversification and cultural projection. The Finance Minister’s emphasis in Budget 2026 signals a clear policy direction to formalise this sector, address its structural challenges, and maximise its growth.

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FAQs

How does the Orange Economy benefit India’s economy?

The Orange Economy creates jobs for youth and women, boosts revenue through cultural exports, strengthens soft power, and attracts tourism. It also fosters innovation and supports economic diversification.

What challenges does the Orange Economy face in India?

The Orange Economy faces challenges like limited access to finance, weak IP protection, and an unorganised workforce. Addressing these issues through policy changes is key to unlocking its full potential.

What is the Orange Economy in India, and why did FM Sitharaman highlight it in the Budget 2026?

The Orange Economy in India covers sectors like arts, media, entertainment, and design, driven by culture, creativity, and intellectual property. FM Sitharaman highlighted it in the Budget 2026 for its ability to create jobs, boost exports, and strengthen India’s global influence.