What is 'orange economy' and what has Nirmala Sitharaman proposed in Budget 2026?

The Union Budget for 2025-26 put the spotlight on India’s “orange economy”.

Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman on Sunday said India’s fast-growing animation, visual effects, gaming and comics (AVGC) sector industry is projected to require nearly two million professionals by 2030.

“To support this growing ecosystem, I propose to support the Indian Institute of Creative Technologies, Mumbai, in setting up AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges,” she said in her Budget speech.

What is the orange economy?

The orange economy refers to economic activities driven primarily by creativity, culture and intellectual property.

Unlike traditional sectors that rely on physical goods, value in the orange economy is generated from ideas, artistic expression, digital content and cultural output.

It includes industries such as animation, films and television, visual effects, gaming, comics, advertising, music, digital content creation, live entertainment and other creative services, all of which have seen strong growth due to rising incomes, internet penetration, OTT platforms and digital consumption.

The Economic Survey 2025-26, tabled in Parliament last week, noted that India’s media and entertainment sector has emerged as a major pillar of the services economy, covering audio-visual production, broadcasting, digital content, animation, gaming, advertising and live entertainment.

Over the past decade, the sector has shifted strongly towards digital and platform-based delivery, transforming revenue models, employment and value chains.

Union Minister for Information and Broadcasting Ashwini Vaishnaw, addressing the media after the Budget, said the proposals reflected a “duty-driven budget inspired by the power of youth and the strength of women”.

He said Prime Minister Narendra Modi has placed India’s creative economy on the global stage through initiatives such as WAVES, and added that the Indian Institute of Creative Technologies would connect with thousands of schools and colleges through creator labs.