Budget 2026: What is the Orange Economy and Why is the Government Backing It?

The term “Orange Economy” gained attention after it was highlighted in the Union Budget 2026. Also known as the creative economy, it refers to industries that generate value through ideas, creativity, culture, and intellectual property rather than physical manufacturing.

This includes sectors such as animation, gaming, visual effects (VFX), comics, film, music, design, publishing, advertising, and digital content creation. These industries rely on talent and innovation and are seen as key drivers of modern economic growth.

Why the Orange Economy Matters

The Orange Economy is important because it can create large-scale employment, especially for young people. Creative industries are less dependent on heavy infrastructure and can absorb a wide range of skills, from artistic talent to technology and software expertise.

Globally, creative industries contribute meaningfully to economic output and employment. In India, they are also linked to tourism, urban development, and cultural exports, making them an important part of the services-led growth model.

Budget 2026 Focus on Creative Industries

In Budget 2026, the government announced fresh support for the Orange Economy to strengthen India’s creative workforce. A key proposal is to support the Indian Institute of Creative Technologies (IICT), Mumbai, in setting up animation, VFX, gaming, and comics (AVGC) and content creator labs.

These labs will be established across 15,000 secondary schools and 500 colleges nationwide. The aim is to introduce creative and digital skills at an early stage and prepare students for emerging career paths.

The AVGC sector is projected to require nearly 2 million professionals by 2030, highlighting the scale of opportunity in creative fields.

Link With Technology and Skills

The push for the Orange Economy is closely tied to emerging technologies such as artificial intelligence, digital design tools, and immersive media. The Economic Survey 2025–26 highlighted creativity-led sectors as strong engines for employment, urban services, and tourism.

Special focus has also been placed on live entertainment and concert-based industries, which generate spillover benefits for hospitality, transport, logistics, and local businesses.

Budget 2026 also emphasised design education, announcing plans to strengthen institutions like the National Institute of Design to address skill shortages and support regional development.

Read more: Budget 2026 STT Hike: Here is How Trading Will Cost More for Retail Investors Now.

Conclusion

The Orange Economy represents a shift towards a more creative, technology-driven growth model. By backing animation, gaming, VFX, design, and content creation, Budget 2026 aims to build future-ready skills, generate jobs, and position India as a global creative hub. As creativity and technology converge, these industries are set to play a bigger role in India’s economic journey.

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