Can India’s Creative Economy Rise Amidst Regional And Global Challenges?

On a recent afternoon, a waitress at a tony Thai restaurant in Bangkok broke into “Dola Re Dola,” the iconic song from Devdas (2002), upon spotting our Indian group. “I’m no Aishwarya Rai,” she joked, “but I love this song.” Her impromptu performance highlighted Bollywood’s growing global resonance. In 2022, Gangubai Kathiawadi, a biopic starring Alia Bhatt, became a cultural sensation in Thailand, sparking viral reels of Thai women emulating the film’s titular character.

India’s creative economy is undoubtedly creating a buzz in new territories. But can it address the pressing challenge of job creation? Globally, where does India stand in creative goods exports?

According to the United Nations Conference on Trade and Development’s (UNCTAD) Creative Economy Outlook 2024, a small group of countries accounts for over two-thirds of global creative goods exports. In 2022, China led the way with $250 billion, followed by the USA ($46 billion) and Italy ($39 billion). India’s corresponding figure stood at $21 billion.

“India’s creative economy is large, but its untapped potential is even larger,” notes a 2022 working paper by the Asian Development Bank Institute (ADBI) and ICRIER. This potential could address India’s most pressing economic challenge: job creation, particularly for youth.

Currently, India’s creative economy contributes nearly 8% to national employment, significantly higher than countries like Türkiye (1%) or South Korea (1.9%). A third of this workforce is aged between 15 and 29 years.

India’s digital creative industries are thriving, supported by a staggering 340% growth in registered internet users between 2013 and 2023. Smartphone penetration has expanded access to content, while India’s entertainment and media industry is projected to grow by 10% annually from 2024 to 2028. Streaming platforms and collaborative tools enable Indian creators to reach global audiences, diversifying revenue streams and spurring cross-border collaboration. Asian countries, including India, are well-positioned to become offshoring hubs due to high-quality output and lower costs.

However, India faces significant challenges. The Animation, Visual Effects, Gaming, and Comics (AVGC) sector, expected to create 23 lakh jobs by 2032, suffers from a skills gap. While India produces many graduates in animation and VFX, their training often fails to meet international standards. Other hurdles include high infrastructure costs, intense global competition, and persistent piracy issues. Additionally, India’s fashion and design industries lag behind Southeast Asia’s globally recognized brands.

To compete, India must strengthen its ecosystem. Recent initiatives like the All India Initiative on Creative Economy (AIICE) and the National Centre of Excellence (NCoE) for AVGC-XR are steps in the right direction, but implementation remains pending. Promoting Indian content globally, addressing intellectual property bottlenecks, and fostering interdisciplinary collaboration are critical to unlocking India’s creative potential. Southeast Asia’s integration through ASEAN underscores the value of regional collaboration—a model India could emulate.

India’s creative boom has begun. The question is whether the nation can harness its talent, bridge gaps, and lead the way forward in an increasingly competitive global landscape Patralekha Chatterjee is a writer and columnist who spends her time in South and Southeast Asia, and looks at modern-day connects between the two adjacent regions.

X: @Patralekha2011