The Union Budget 2026 had a lot of focus on the orange economy. To understand this paradigm shift it is important to understand which fields are a part of the orange economy. The orange economy covers creative industries such as media, fashion, digital content, culture, and design along with AVGC (animation, visual effects, gaming, and comics). This signals a shift in how India would look at creativity going forward. The business ecosystem will soon be driven by creativity. Brands are now investing in newer ways of marketing rather than traditional. Influencer marketing is getting a lot of attention from the brands. As per the data by EY and Collective Artists Network, influencer marketing in India alone is expected to rise at a compound annual growth rate (CAGR) of 18% to reach ₹3,375 crore by 2026. Between 2 and 2.5 million commercialised content creators, independent digital creators with more than 1,000 followers who consistently create digital content, are currently active in the nation. India is one of the world’s fastest-growing creative marketplaces, with the whole creator economy expanding at a rate of 22% per year.
A recent empirical study conducted among Indian Gen Z Instagram users examined how micro-influencers shape consumer behavior (Karamchandani et al., 2025). Micro-influencers are those with relatively small but niche followings. The findings challenge popular assumptions that expertise or celebrity status automatically leads to higher purchase intention. An interesting finding is evident from the study that image satisfaction, rather than advertising trust alone, drives consumers toward purchase decisions.
The orange economy is built on cultural connection, identity, and ideas. The value these influencers bring is from consistent audience engagement that results in a deeper social connection. Micro-influencers occupy a unique position as informal brand ambassadors with a critical role on social media platforms. And unlike celebrities and famous personalities micro-influencers are relatable, often sharing their own personal narratives alongside brand content.
The study based on responses from almost 300 Indian Instagram users, found that originality in communication significantly enhances image satisfaction, which, in turn, has an effect on the intention to purchase. And that consumers’ trust in the advertised content does not directly translate into purchase intention. This means that the deluge of commercial messages is failing badly to connect and relate to the audience. A lesson brands have learnt and have signed on micro influencers to overcome this. New and lesser-known creators often outperform seasoned celebrities in influencing consumption trends. Micro-influencers often use storytelling to create an emotional appeal that audiences strongly relate to as it is much closer to the viewer’s own self, lifestyles, and everyday realities. Audiences often perceive micro-influencers as everyday people who present themselves without excessive glamour, luxury, or highly stylised content. The originality these influencers bring makes the messages feel more genuine and plays an important role in building trust. This perceived authenticity ensures greater trust among viewers.
The regional content created by micro-influencers from Tier II and Tier III cities is getting more traction, as out of 958 million active internet users in India, 57% are rural. And nearly 98% of these internet users in the country accessed content in regional languages, with Tamil, Telugu, and Malayalam emerging as the most popular due to their extensive availability as per IAMAI report. Content in vernacular language strikes a chord with the audience due to its cultural relevance.
For companies, the ultimate objective is to sell. Micro influencers’ content that is creative, unique and authentic enables brands to achieve this much better than traditional advertising. These insights show how crucial the Orange Economy is in the economics of consumption. Companies cannot afford to overlook this.
Influencers are powerful in their communication, giving the audience a genuine and engaging brand experience. Their convincing, creative tactics appear less like a marketing effort from yet another brand but more like real content from another consumer. Collaborating with micro-influencers enables brands to establish a connect with their target market most effectively. The crucial role micro influencers play in marketing today elevates these content creators from being mere hobbyists to key economic drivers. Even the government is recognising this rapid transformation through their policies. If the aim is to institutionalise the Orange economy, then the policies should support the influencers producing the creative content. The government has plans to implement some of the policies that move beyond just celebrating creativity but instead provide sustenance to the creators. The central government announced a $1 billion fund to boost the creator economy. Prasar Bharati’s initiative aims to integrate micro-influencers into public service broadcasting through creator’s corner. This initiative not only provides national exposure but also provides aid in the protection of creators’ intellectual property (IP). The 2026 Union Budget indicates a shift from treating creators as a novelty to viewing them as essential economic infrastructure. The aim is to nurture a sustainable orange economy in the long run through upskilling the youth into certified content creators. That day is not far when India will be positioned as a global creative economy. The orange economy is no longer an emerging trend—it is India’s next competitive advantage. The question is not whether creators will shape the economy, but whether institutions will evolve fast enough to support them.
This article is authored by Shikha Karamchandani, assistant professor and programme director, RV University, Bengaluru.
