What is Creative economy?
There is no single definition of creative economy and this fluidity is its epitome! UNCTAD defines creative economy as an evolving concept, which builds on the interplay between human creativity, intellectual property, knowledge and technology. The creative industries which comprise the creative economy are advertising, architecture, arts and crafts, design, fashion, film, video, photography, music, performing arts, publishing, research & development, software, computer games, electronic publishing, and TV/radio. Quite an exhaustive list! So how has this bucketing of industries really worked for the global economy?
Dataspeak:
World
Economic multiplier effect: $1 spent in creative economy creates $2.5 of wealth
Market share: Economic contribution of creative economy ranges from 0.5% to 7.3% of GDP, across countries globally and employs between 0.5% to 12.5% of the workforce. Regarded as one of the world’s fastest growing sectors the creative
economy may account for 10 % of global GDP before 2030.
Exports: Over the past decade, creative services’ share of all service exports rose from 12% to 19%, while creative goods’ share of all goods exports has remained steady around 3% since 2002. The most exported creative services in 2022 were software services (41.3%) and research and development (30.7%), followed by advertising, market research, and architecture (15.5%), audiovisual services (7.9%), information services (4%), and cultural, recreational, and heritage services (0.6%).
India
Consider these facts:
• India’s creative economy is a $30 billion industry • Arijit Singh out-streamed Beyonce in 2022 • Bollywood produces more films than Hollywood • Major streaming platforms like Neflix and Disney are investing heavily in Indian content • India retained the 40th position in Global Innovation Index in 2023 • India’s creative economy drive received a shot in the arm during the G20 Culture Ministers’ Meeting held in Varanasi, Uttar Pradesh, last year. |
Role of technology in advancing creative economy:
The creative industries worldwide are embracing digital transformation in a big way and one major driver has been AI. The moot point is technology is making production faster and cheaper. Authors, musicians, actors, film-makers and others working in the creative industries are often waking up to copyright and patent issues. The World Intellectual Property Organization (WIPO) is supporting the development of sustainable creative economy initiatives by working on the improvement of intellectual property laws. The creative and the digital economy taken in conjunction are amongst the key drivers of innovation in the global economy. However, there is a digital divide amongst developed and developing countries. This can to some extent be explained by the fact that developed economies are characterised by a large presence of SMEs and small businesses.
Video on demand (VOD): Sunrise sector in India’s Creative economy
• Premium online VOD is set to fuel 50 per cent of new revenue growth of India’s total video market • As of 2024, online video (excluding sports) accounts for 24 per cent of the total video market, a threefold increase since 2017. This share is projected to rise to 30 per cent by 2028 • With streaming revenues equating to 1.5 times of movie producers’ net share from theatrical box office, the growth in the video industry holistically is being driven by streaming • The streaming revolution has spurred a content boom, with over 1,500 original titles released on VOD platforms between 2016 and 2023.
• Number of direct and indirect jobs created in 2023 alone stands at 1,74,000 • Services like Prime Video, Disney+ Hotstar, Jio Cinema, Netflix, Sony Liv and Zee5 are leading this cultural exportation, positioning Indian content globally
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Way forward for India
Diversification: Developing economies primarily export creative goods, while developed countries account for the majority of creative services exports. This is an area where developing countries like India can step in through policy incentives and enabling ecosystems. For India, this is bound to be a boon for sectors like software services, research and development, advertising, market research, architecture, audiovisual services, information services, cultural, recreational and heritage services.
Industry barometer: India’s creative economy is now a USD 30 billion industry. Much of this industry is fragmented and comprises small scale enterprises. For the purpose of integration and assessment, there is a need to align with global statistical classifications to help better quantification of the economic impact of the creative industries.
Branding: To promote the increased recognition of Indian Culture globally, there is a need to promote Indian cultural and creative goods and services through the organization of events, trade fairs, and international festivals.
Digitalization: One uniqueness of the creative economy is that it is all encompassing covering varying demographics (age, gender, income etc). Digitalization is a key enabler for the creative industries across demographies. Closing the digital gap between genders and urban and rural areas can be a game changer for the industry.
Innovation: Innovation lies at the heart of the creative economy. However, some developed nations of the global North have placed India among the most challenging major economies with regards to enforcement and protection of intellectual property rights. Issues have been raised against online piracy, counterfeit medication, trademark violations. India’s ongoing alignment with WIPO is set to propel innovation in the global South.
Conclusion
Creative economy is coming up as an engine of growth for both the global North and South. It has been acknowledged as a means for promoting SDG goals. However, challenges and prospects of this journey are different for different countries, as per their growth path, resource endowments and policy architecture. For India, the possibilities are huge and it can be an important pathway for attainment of the collective vision of “Vikshit Bharat”.