Reimagining India’s Creative Economy for a Digital Future

India’s creative economy is experiencing a transformative shift by combing technological advancements with its rich cultural heritage. From digital content creation to design and media, the digitalisation of the creative sector is driving economic growth and fostering a new generation of entrepreneurs. The adoption of digital technology in creative sector is not just about adopting new tools but about reimagining the entire creative process. With a rich cultural tapestry as its foundation, India is poised to become a global leader in the digital creative space.

Economic contribution

According to ‘Creative Economy Outlook 2024’ the global creative economy generates over Rs. 1,72,14,000 crore (US$ 2 trillion) in annual revenue and employs ~50 million people. India’s Rs. 3,01,245 crore (US$ 35 billion) creative industry is large, but its untapped potential is even larger. It has seen remarkable growth, with creative exports rising by 20% in 2023 alone, generating over Rs. 94,677 crore (US$ 11 billion). India’s creative economy which is measured by the number of people working in various creative occupations, is estimated to contribute ~8% of the country’s employment, much higher than the corresponding share in Australia (2.1%), South Korea (1.9%), Mexico (1.5%), and even Turkey (1%). According to a report by Vision IAS, creative occupations pay reasonably well ~88% higher than the non-creative ones and contribute ~20% to nation’s overall Gross Value Added (GVA).

Regional and demographic shift

The creative industries, which were once based exclusively in tier one cities and considered exclusionary for many aspiring creative artists, are now flourishing in tier two and tier three cities. Beyond the metros, India’s creative economy thrives in unexpected places. Of the top ten creative districts, six are non-metros like Badgam from Jammu and Kashmir, Panipat from Haryana, Imphal from Manipur, Sant Ravi Das Nagar from Uttar Pradesh, Thane from Maharashtra, and Tirupur from Tamil Nadu. These areas are showcasing the country’s diverse creative talent, according to an Asian Development Bank Institute report.

State spotlights and creative infrastructure

Maharashtra (Mumbai and Pune) – Mumbai the capital of Maharashtra is a major hub for film production activity and is home to Bollywood, one of the biggest global film industries. The state is home to the Hindi and Marathi film industries and produces ~200 films annually. The state has launched initiatives such as the Maharashtra Film Cell (MFC) and Film Tourism Promotion Council to aid in film production, and a sustainable and well-equipped film city called Dadasaheb Phalke Chitranagri Film City in Mumbai.

Karnataka (Bengaluru) – Kannada films produced in Bengaluru have been a significant contributor to the Indian film industry. The industry produces ~200 films annually and has a gross revenue of Rs. 304 crore (US$ 35 million) in 2024 according to Koimoi. Bengaluru being a major centre for IT and multimedia also serves as an ecosystem for AVGC- XR industries.

Bihar (Patna) – The Bhojpuri film industry, originating from Patna, Bihar has seen immense growth since the 1960s. The Bihar state government plans to construct new film city in Rajgir and is organising film festivals to showcase various projects in the industry.

Kerala (Thiruvananthapuram) – The Malayalam film industry, based in Kerala produces ~200 films annually and the first Malayalam film was produced in 1928. The government plans to enter the online content market space to provide a space for lower budget films. The state government also launched an initiative for women directors to make the industry more inclusive. Under the state’s film policy, regional films, children’s films, full length feature films and documentary films receive fiscal incentives.

Tamil Nadu (Chennai) – Chennai, home to the Tamil film industry also known as Kollywood, is one of the most successful film industries in India and ranks third in the country. The industry has been in existence since 1910s and received many awards domestically as well as internationally. The state is committed to delivering world class production by upgrading their existing infrastructure at their flagship M.G. Ramachandran Film City. In 2023, Tamil films grossed over Rs. 1,63,115 crore (US$ 19 billion) at the Indian box office. Kollywood produces over 150 films annually.

Telangana (Hyderabad) – Hyderabad is the hub for Telugu film industry and is one of the most successful film industries in India. It ranks second in the country. Hyderabad is home to some of the best film studios and offers innovative postproduction and animation technologies. The state government has implemented initiatives to develop the state into a global media and entertainment hub. Ramoji film city located in Hyderabad is ranked first in the Guinness Book of World Records as the largest film studio complex in the world measuring around 1,666 acres.

Key opportunities

Distribution platforms – With rise of online streaming platforms and low-cost distribution models like Instagram, Facebook, X, and other social media platforms provide better reach for affordable and local creatives. Successfully leveraging these platforms could prove beneficial to the industry and could help deliver content globally at a fraction of the cost of traditional distribution.

Artificial intelligence (AI) - According to Press Information Bureau (PIB), the use of AI is rising in the creative economy. As of 2024, only 41% of news teams, 39% for social media content, and 38% for articles and illustrations, are utilising AI, offering significant room for growth. AI lowers cost and expands revenue streams and can be used to access previously unexplored markets. With a robust regulatory framework, India could use this technology to its fullest extent.

Large audience base – India has the largest global social media base, and many platforms have their largest user base in India. The country is home to ~491 million active social media users as of January 2025 which is ~33.7% of the total population according to Datareportal, Digital 2025: India report. With the rapid expansion of network connectivity infrastructure, the number is increasing and shows exciting potential.

Growing demand – The Indian diaspora is a major consumer of Indian films, music, and digital content. They are boosting demand for Indian content globally, increasing India’s cultural footprint and offering export opportunities to high value audience. Several Indian films like RRR and Gangubai Kathiawadi have achieved global success.

A high growth, high impact frontier

India’s creative economy is rapidly evolving into one of the country’s most dynamic growth engine and is delivering not just a cultural impact but economical returns too. Whether its growing appetite for Indian content or surge in creatives across the country, India is ready to reimagine creativity, not just as an industry but as a movement.

FAQs

What does India's creative economy include?

India’s creative economy includes industries and occupations involved in the production and distribution of creative goods and services such as film, music, design, digital content, gaming, and more.

How much is India's creative industry worth?

As of 2023, India’s creative industry is valued at Rs. 3,01,245 crore (US$35 billion) and continues to grow rapidly, with exports rising by 20% in 2023.

What are the key sectors of the creative economy in India?

The major sectors include film and media, design, animation, visual effects, gaming, comics (AVGC-XR), OTT platforms, and digital content creation.

Which Indian state has the largest film studio complex?

Telangana’s Ramoji Film City in Hyderabad is the world’s largest film studio complex, covering around 1,666 acres.

How much does India’s creative economy contribute towards employment?

The creative economy provides ~8% of India’s total employment, significantly higher than South Korea, Mexico, or Australia.