At the recently held World Audio Visual & Entertainment (WAVES) 2025 Summit, Indian Prime Minister Narendra Modi hailed “the dawn of the Orange Economy in India”, saying it was the perfect time to “create in India, create for the world”. But what is the Orange Economy, and why is it poised to bring about tremendous growth?
What exactly is 'Orange Economy'?
The Orange Economy, often referred to as the creative economy, refers to a group of economic activities centred around the use of human skills, knowledge, and innovation.
UNCTAD defines the creative industries as “the cycles of creation, production, and distribution of goods and services that use creativity and intellectual capital as primary inputs”. From traditional cultural activities to modern technology-driven fields, the Orange Economy encompasses a wide spectrum of sub-sectors, like arts, media, fashion, tourism, and digital innovations. It is one of the fastest-growing sectors globally and has immense untapped potential, especially in developing countries.
UNESCO estimates that the creative industries account for 3.1% of the global GDP and 6.2% of global employment. This results in almost US$ 2.3 trillion annually. PwC’s Global Entertainment & Media Outlook 2023–2027 similarly projects a promising future for the industry. The contribution of the Orange Economy in integrating economic growth with socio-cultural impact is undeniable.
Origins of the Orange Economy
Prominent British analyst and author John Howkins coined the term ‘Creative economy’ in his 2001 book “The Creative Economy: How People Make Money from Ideas”. Pointing out the gap between conventional business models and the ongoing wave of innovation, he made three propositions: ‘Everyone is born creative’, ‘Creativity needs freedom’, and ‘Freedom needs markets’. This formed the basis of the Orange Economy, a concept developed by former Colombian President Iván Duque Márquez and former Culture Minister Felipe Buitrago in their book “The Orange Economy: An Infinite Opportunity” (2013).
The colour orange symbolizes leadership for Native Americans, transformation in Confucianism, and entertainment in Western traditions. Orange is also associated with fire, and hence, connected to metaphors like “the fires of passion”. It is this strong cultural association with the colour that prompted Márquez and Buitrago to come up with the label ‘Orange Economy’ because, in their opinion, the sector lacks a brand identity, partly due to its several competing definitions and its ever-evolving nature.
The writers attribute this ‘invisibility’ of the Orange Economy to a confluence of factors. The complementarity of culture and the economy is not easily identified; culture has conventionally been recognized only for its symbolic value. Consequently, the opportunities it presents in terms of wealth creation and employment generation are underexplored. Furthermore, the production of creative goods and services involves an extremely dynamic and often intuitive process, which can be challenging to manage and harness. Lastly, and most importantly, the measurement of the impact and scope of the Orange Economy is in the nascent stages.
Inconsistencies within the scope
The quantitative approach to culture, being a recent phenomenon, has tools to measure and leverage its potential that are still being developed.
For example, UNCTAD used to measure only international trade in creative goods and services until a 2024 technical report provided a revised framework for delineating the economic contribution of creative industries. Data collection is highly inconsistent due to irregular political commitment and underrepresentation in statistical frameworks. The significant lack of information, especially in developing countries, in turn, impedes the dissemination of data, resulting in studies about the Orange Economy being rare and ineffectively communicated. The absence of proper frameworks ultimately hinders policy-making, causing inefficiencies in identifying and amplifying the economic potential of the creative sector.
Regardless, the Orange Economy competes on a strong footing with traditional sectors like agriculture and mining, outpacing them in terms of employment creation and contribution to the global economy. If it were a country, it would be among the world’s top 10 largest economies and top 5 exporters, with creative services exports reaching a record US$1.4 trillion and creative goods exports reaching US$713 billion in 2022.
According to the book, in addition to being a net taxpayer, the Orange Economy has proven to be more resilient in terms of crisis recovery and price volatility. While OPEC exports fell by 40% in 2009 in the face of the Great Recession, creative trade contracted by only 12% and reached record highs the following year. Intangible capital also does not suffer from the same scarcity problem as natural capital, thereby making it more “tradable and renewable”.
In a world where formal job markets are often constrained, especially in emerging economies, the creative sector provides alternative pathways to income. It offers flexible work environments, supports freelancing, and encourages entrepreneurship, thereby appealing to the younger demographic. It plays a key role in boosting local economies by linking local producers to global markets, enabling institutional capacity building and development in even the remotest areas.
Growing potential of the sector
The importance of the Orange Economy goes far beyond its economic contributions. Lower entry barriers make it a force for diversity and inclusivity, providing a platform for women, LGBTQ+ individuals and other marginalized communities to tell their stories and reach audiences across borders. The UN Economist Network reports that women and young people dominate the provision of creative goods and services, and yet, are underrepresented in cultural employment. Investments in the sector can serve as a means to achieving pay parity and equal access to leadership positions.
Orange Economy is pivotal in the preservation of heritages. By adapting cultural traditions to contemporary tastes through innovation and new media, it sustains and revitalizes local cultures, safeguarding communities and enabling global audiences to celebrate indigenous and regional identities. This eventually builds nations’ soft power, enhancing their cultural influence and attracting foreign investments. In the digital age, the significance of the opportunity that the Orange Economy presents cannot be overstated.
It took 75 years for the telephone to reach 100 million users; 7 years for the World Wide Web, 2.5 years for Instagram, and just 2 months for ChatGPT. The rapid development of new tools, coupled with the seemingly endless demand for content, pushes consumer experiences beyond traditional boundaries, inextricably linking technology and human creativity on an unprecedented scale.
Conclusion
Through the interplay of cultural, environmental, and economic factors, the Orange Economy emerges as a key player in achieving the 2030 Agenda. In recognition of this, 2021 was declared the “International Year of Creative Economy for Sustainable Development” by the UN. Investing in creativity is no longer a luxury—it is a strategic necessity for a better future. A renewed focus on cultural infrastructure, regulations for rightful compensation, and stronger intellectual property frameworks can enable us to benefit from the “infinite opportunity” that Márquez and Buitrago so ardently emphasize.
The Orange Economy is more than just an economic model — it is a philosophy of value creation rooted in individual and collective imagination. Maya Angelou’s quote, “You can’t use up creativity. The more you use, the more you have,” has never been truer. In a world facing automation, inequality, and fragmentation, creativity offers not just jobs but meaning and connection. Embracing this potential means embracing a more sustainable, equitable and dynamic world.
Written by – Siya Gaitonde
Edited by – Srimoyee Palit
