Orange future: How micro-influencers are redefining the creative economy

The Union Budget 2026 placed significant emphasis on the Orange Economy. To understand this paradigm shift in policy, it is important to clarify what the term encompasses. The Orange Economy includes creative industries such as media, fashion, digital content, culture, and design, along with AVGC—animation, visual effects, gaming, and comics. The focus signals a change in how India intends to value creativity in the years ahead.

The business ecosystem is increasingly being driven by creativity. Brands are investing in newer forms of marketing rather than relying solely on traditional ways. Influencer marketing, in particular, has attracted considerable attention from brands. According to data from EY and Collective Artists Network, influencer marketing in India is expected to grow at a compound annual growth rate (CAGR) of 18 per cent to reach Rs 3,375 crore by the end of this year. Between 2 and 2.5 million commercialised content creators—independent digital creators with more than 1,000 followers who consistently produce digital content—are currently active in the country. India is among the world’s fastest-growing creative marketplaces, with the broader creator economy expanding at 22 per cent annually. 

A recent empirical study conducted among Indian Gen Z Instagram users examined how micro-influencers shape consumer behaviour (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 a deluge of commercial messages does not directly connect and relate to the audience. A lesson brands have learnt, and they 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 gaining significant traction. Of India’s 958 million active Internet users, 57 per cent are rural. And nearly 98 per cent 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, according to an IAMAI report. Vernacular content resonates because of its cultural relevance. 

For companies, the ultimate objective is to sell. Creative, distinctive and authentic micro-influencer content enables brands to achieve this more effectively than traditional advertising. These developments show how crucial the Orange Economy has become to patterns of consumption. It is no longer peripheral to mainstream economic activity. 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 connection 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.

The government, too, appears to be recognising this rapid transformation. If the objective is to institutionalise the Orange Economy, policy must move beyond symbolic celebration and towards sustained support for creators. The central 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 off 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.

The writer is an assistant professor and programme director at RV University, Bengaluru

(Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH.)