India's Creative Economy: From Imagination to Innovation

The creative economy has become a powerful transformative force in the world today and is one of the most rapidly growing sectors of the world economy, not just in terms of income generation but also for job creation and export earnings. India is taking lead in growing this sector by becoming a $30 billion industry' now. However, besides facing issues related to intellectual properties, the creative industry also faces challenges from the competition faced by technology. 

• Creative economy is an evolving concept and not bound by a single definition. 
• UNCTAD defines creative economy as an interplay between human creativity, ideas, intellectual property, knowledge and technology.
• Essentially, it is the knowledge-based economic activities upon which the ‘creative industries’ are based.
• According to UN estimates, the creative economy industries generate annual revenues of over $2 trillion and account for nearly 50 million jobs worldwide.
• Within this broad framework, the concept of the creator economy emerges as a pivotal component.
  • Creator economy involves content creators like individual bloggers, YouTubers, podcasters and social media influencers who leverage digital platforms and social media to distribute their work and generate revenue.
  • According to Goldman Sachs, the Creator Economy is currently valued at $250 billion and projected to grow to $480 billion by 2027.

1. What are the characteristics of creative occupations?

Creative economy comprises all activities undertaken by an individual within a “specific” occupation for the purpose of income generation and wealth creation. The characteristics of these occupations include-

• Knowledge-based economic activities: Creative occupations are based on knowledge that is either formally acquired through education and training or is inherited, that is, informal skill transfer that has been preserved over generations. 
  • For instance, occupations like the crafting of blocks for Sanganer textiles printing in Rajasthan.
• Original idea and imagination: Creative occupations involve generation and exploitation of intellectual property. This involves innovation in ways that are not necessarily mainstream but even frugal and flexible. 
  • For instance, India’s popularly known “Jugaad” approaches to solving problems, using scarce resources in innovative ways.
• Non-repetitive nature: The associated creative impulse makes these occupations nonrepetitive in nature making them more adaptive against mechanization and automation. 
  • Studies suggest that 86% of highly creative jobs in the US and 87% in the UK having no or low risk of being displaced by automation.
• Economic and culture value chain: An individual's original idea, is developed into a cultural product through production and distribution which can spark innovation and new products based on consumer feedback. 
  • For instance, the output of unorganized handicraft sector in Barmer, Rajasthan is sold through intermediaries to big production houses who process it before distributing it through either domestic retailer.

1. What is the status of Creative Economy in India?

In India, communities have long been the vanguard of the creative economy. Their cultural contribution through products and services, like architecture, dance, festivals, handicrafts, literature, and music, have created a legacy that has lasted across centuries. At present,

The creative economy plays a significant role across various dimensions of economic and social development and its influence extends to cultural and technological spheres as well.

• Economic Growth- 
  • Create linkages and Spill-over Effects: The growth of the creative sector can lead to an increase in demand for goods and services from other sectors, such as the hospitality and tourism industry.
    • For instance, the film industry in India, often referred to as Bollywood, is a major part of the creative economy, contributing significantly to the country’s GDP and direct as well as indirect employment.
  • Innovation and Economic Diversification: The associated creativity, imagination, and intellectual knowledge helps to produce a wide range of products and services which can help diversify the economy by lowering reliance on established industries and opening up new opportunities.
  • Export Earnings: Creative economy plays a crucial role in promoting export earnings in India across various sectors, including film and entertainment, software and IT services, textiles and apparel, handicrafts, animation and VFX, and music and entertainment content. 

• Social Development
  • Social Inclusion and Empowerment: The creative economy gives underprivileged groups a forum to share their viewpoints, histories, and cultures.
    • For example, online blogs, video channels, and social media accounts allow individuals from marginalized communities to amplify their voices and connect with like-minded individuals worldwide.
  • Driving Positive Social change: Artists, filmmakers, and musicians address social issues such as gender equality, human rights, environmental sustainability, and mental health through their creative work, inspiring activism and driving positive change.
  • Cultural Preservation and Promotion: Creative economy not only helps in keeping the cultural narratives alive but also markets them domestically and internationally, contributing to cultural tourism.
    • For example, Handloom and handicraft industries in various parts of India protect and promote cultural heritage by sustaining traditional methods of production. 
  • Skill Development and Education: The rise of edutainment in India, where education is combined with entertainment through digital platforms, has transformed traditional learning methods. It not only makes learning more engaging for students but also encourages the development of new skills relevant to the creative economy.
• Diplomacy and Soft Power: The cultural exchange promotes mutual understanding and opens up avenues for diplomatic engagement.
  • For example, Indian cuisine has become integral part of India’s soft power. 
• Sustainable Development: Sustainable fashion brands in India are increasingly gaining prominence, focusing on environmentally friendly practices. These brands are tapping into global sustainability trends, driving demand for eco-friendly materials, and promoting sustainable consumption.

Challenges related to Digitalisation:

• Digital Divide: While urban areas may have robust digital infrastructure, rural and semi-urban areas often lack reliable internet access, which is critical for the digital creative economy. This limits the potential reach and growth of creative digital services.
• Cybersecurity: As creative industries move online; many creative businesses may not have the knowledge or resources to effectively protect their digital assets.
• Digital Literacy: There's a significant portion of the population that lacks digital literacy, which is essential not only for consumption of creative digital content but also for its creation and distribution.
• Skill Gaps: India faces a shortage of professionals trained in skills in new digital technologies like artificial intelligence, machine learning, and blockchain which can be used in the creative economy.
• Inadequate Protection of Intellectual Property: This includes the lack of an effective copyright enforcement framework, insufficient intellectual property training and expertise, a cumbersome registration process, a lack of coordination among enforcement agencies, and expensive judicial procedures.

• Systemic Issues:
  • Lack of supportive policy frameworks: The policymaking for creative industries remains scattered among multiple ministries, limiting its growth. Further, due to the heterogenous nature of the creative economy, there is no single industry body to take forward its views on regulations and policies beneficial to its growth and development. 
  • Lack of reliable and comprehensive data: This hinders accurately tracking and measuring the creative activities. Measurement challenges are intensified due to the presence of a huge informal sector that employs a large proportion of creative workers, such as folk artists, local artisans, handicraft workers.
  • Uneven Funding: The creative and cultural industries, particularly minorities’ artworks often struggle to access funding. As a result, they regularly miss out on opportunities to explore new projects or take new risks.
• Inherent issues of the sector:
  • Fragmentation of the Creative Industries: Many of India's creative sectors, such as handicrafts and textiles, are fragmented and consist of numerous small-scale enterprises that lack the capacity to scale up.
  • Market Access and Distribution: Creative products and services often struggle to find effective distribution channels. The dominance of large players in some creative sectors can make it difficult for smaller entities to compete.
  • Lack of transparency in the selection process:  The selection process is often random or based on subjective criteria. Talented artists, particularly those based outside the city, are unable to gain from sponsored platforms. This creates inequality in representation.
  • Challenges faced by online content creators: These majorly include privacy and security concerns, mental health issues due to pressure to consistently produce content, legalities and compliance issues such as copyright infringement, tax obligations etc.
  • Inadequate Recognition: The lack of awareness or misperception about local culture and arts in India is an impediment particularly in textile and handicrafts industry. Because of this, it is difficult to build a successful brand and expand both domestic and international customer bases.

India has undertaken several initiatives to support and stimulate the growth of its creative economy, recognizing the sector's potential. These initiatives span government policies, digital infrastructure development, awards, educational programs etc. Some of the key initiatives include:

• National Creators Award: To acknowledge digital innovators and content creators for their impactful contributions across various domains.
• Zonal Cultural Centers-The Ministry of Culture has set up seven Zonal Cultural Centers (ZCCs) in the country to promote, protect & preserve various forms of folk art & culture.

• They implement number of schemes viz. Award to Young Talented Artists, Guru Shishya Parampara, Theatre Rejuvenation, Research & Documentation, Shilpgram, OCTAVE and National Cultural Exchange Programme in this regard.

• National Handicrafts Development Programme (NHDP) and Comprehensive Handicrafts Cluster Development Scheme (CHCDS) - Ministry of Textiles implements NHDP and CHCDS for development, promotion, & preservation of handicrafts in a holistic manner and to provide sustainable livelihood opportunities to the artisans.
• National Policy on IPR (2016) to tackle issues related to the administration and enforcement framework for IPRs in India. 
• Global Engagement scheme: Promotes Indian culture internationally by supporting Indian art forms through the organization of “Festivals of India” internationally and the provision of financial assistance to cultural societies promoting Indian culture outside India. 
• UNESCO Creative Cities Network: To foster cooperation and facilitate the exchange of experiences and knowledge across seven cultural domains: design, film, crafts and folk art, gastronomy, media arts, literature, and music.
  • Under this program, Mumbai has been designated as Creative City of Films and Hyderabad as a Creative City of Gastronomy.
• Scheme for Promotion of Indian Classical Music and Dance (SPIC MACAY): It is a voluntary movement that organizes programmes of classical music and dance, folk arts, crafts, yoga, meditation, and cinema in schools, colleges, and institutions across the country to enrich the quality of formal education and increase awareness of the rich and diverse cultural heritage.
• Startup India Scheme: To catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.

• Under it, activities like workshops, camps, exhibitions, conferences and seminars are organized aimed at raising awareness of the importance of cultural and creative industries.

• Guidelines for transparency over social media: Government has made it mandatory for social media influencers, including virtual influencers, to disclose promotional content in accordance with the Consumer Protection Act, 2019.

• Defining and Mapping the Creative Industries in India – India must define the bandwidth of creative industry in the country to measure their contribution to the economy , society as well as international trade.
• Finance - Credit guarantee schemes and crowdfunding can be useful in financing entrepreneurs and MSMEs in the creative sector. India could establish funds on the line of European Commission fund Cultural and Creative Sectors Guarantee Fund (CCS GF) to mobilize funds for Creative sector of India.

• India could also establish a joint programme for the creative sector funding using its relationship with various multilateral fora.

• Addressing the Issue of Copyrights - Addressing the issue of intellectual property rights protection and enforcement to safeguard the interests of creators and innovators and incentivize their creativity.

• India could explore the Chinese model under ‘Sword Net Action’ to crack down on online copyright infringement and piracy.

• Increasing Recognition of Indian Culture Globally: Promote Indian cultural and creative goods and services through the organization of events, trade fairs, and international festivals. 

• The Ministry of Culture’s scheme called the Global Engagement scheme is in the right direction.

• Establishing the Creative Districts/Hubs - The Governments across India, both central and state, could identify some of the districts that could be put in the category of creative districts, on the lines of the creative districts model in Thailand.
• Also, initiatives like HRIDAY scheme can be used to establish a creative cities network improve their global reach.
• Forming a Specialized Institution for Creative Industries - A nodal agency can be set up which is specifically dedicated to the growth and development of the creative industries in India on the lines of UK (Creative Industries Council), Thailand (Creative Economy Agency), Indonesia (Agency for the Creative Economy (BEKRAF)), etc.
• Human Capital Development among Youth: India’s education and skilling ecosystem must be improved to prepare its youth for the rapid technological changes that are transforming the creative sector. This entails instilling digital skills, such as digital marketing and graphic design in young workers and creative entrepreneurs.

• Also, arranging workshops and courses for creators to utilize the benefits of emerging technologies like Artificial Intelligence and Block Chain.

• Need for an Integrated Policymaking Institution: Establishing an intermediary organization that can better inform policymakers on the policy support needed for the creative economy’s growth and development.

India's journey in building a creative economy highlights the blend of its rich culture and new technology. As India keeps up with digital changes and supports creative businesses, it's opening up new chances for economic growth and jobs, while also enriching its culture while contributing to global diversity and prosperity.

The creative economy is the part of the economy that tells our stories and the creative works we leave behind as a society are likely to define how future generations understand us.