Syllabus
GS Paper 3 – Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Context
Editorial Article Creative industries can boost economies | Hindustan Times
Introduction
The creative economy is an economic system based on the creation and distribution of creative goods and services.
It includes industries such as arts and culture, design, fashion, film and television, music, architecture, publishing, software, literature, video games, etc.
It is also known as the cultural industries or the Orange Economy.
The creative economy is driven by human creativity and innovation. It is a knowledge-based economy, where the value of goods and services is derived from their intellectual content, rather than their physical properties.
Significance of Creative Economy
Economic Significance
- India’s creative economy is a significant source of commercial and cultural value, contributing to 3.1% of global GDP and about 8% of India’s employment.
- In the pre-Covid period, India’s creative industries contributed 2.5% to India’s GDP.
- Creative industries can help with Job creation, Economic growth, Tourism, Exports, Overall societal development, and Sustainable human development.
Cultural Significance
- The arts, music, film, theater, festivals, literature, crafts and the stories they hold aren’t just forms of entertainment; they represent our identities and lived experiences and build understanding and empathy between people.
- Give voice to traditional and tribal communities on the global stage through their indigenous art and crafts.
Benefits of Creative Industries
- Job and income generation: The creative economy is a major source of employment, generating jobs for a wide range of people, including artists, musicians, writers, filmmakers, designers, and other creative professionals.
- Economic growth: The creative economy contributes to GDP through the sale of creative goods and services, as well as the generation of tax revenue.
- Tourism: Creative industries bring in tourists who spend money on cultural experiences, hotels, transport, and more. This helps India’s tourism and overall economy.
- Exports: Creative industries are major exporters of goods and services.
- Social cohesion: The creative economy can help foster social cohesion by providing a platform for people from different backgrounds to come together and express themselves creatively.
- Sustainable development: The creative economy can contribute to sustainable development by promoting innovation and entrepreneurship, as well as by creating jobs in rural areas.
- Spillover Effects on the Wider Economy through its impact on other parts of the economy, like innovation, tourism, education, and city development. They encourage creativity and cooperation between different areas and fields.
- Education and Skills Development by offering learning chances and promoting cultural understanding and diversity. Creative educational programs help people develop skills in arts and technology.
- Urban Development: They can make cities more vibrant and appealing by creating cultural and social spaces. Cultural centers, theaters, galleries, and entertainment districts improve city life and can boost local economies.
- Promotion of India’s Heritage and Resources by showcasing India’s rich culture, history, and traditions, both at home and abroad. They also make use of India’s natural and human resources, like its biodiversity, craftsmanship, and entrepreneurial spirit
- Global Branding and Soft Power by exporting creative products and services. They enhance India’s soft power by promoting cross-cultural exchange and knowledge-sharing with other nations, strengthening diplomatic and cultural ties.
Challenges Faced by Creative Industries
- Lack of right policies: Creative industries often remain on the sidelines of national and state policies, lacking priority status. Coordination among relevant ministries is necessary.
- Lack of infrastructure in transportation, digital networks, and basic amenities, disrupts creative goods and services’ production, distribution, and mobility for workers and consumers.
- The lack of reliable data related to the size, impact, and contribution of India’s creative industries hampers sector development, policymaking, and recognition.
- Funding deficiencies are a challenge for creative industries, with limited, irregular public funding and risk-averse private investment. Innovative financing mechanisms like crowdfunding and venture capital are underutilized.
- Intellectual Property risks from piracy, counterfeiting, and IP rights infringement, both online and offline. Outdated legal frameworks and a lack of awareness hinder the protection and enforcement of creative rights.
Initiatives to Promote Creative Economy
- National Culture Fund (NCF): The NCF is a fund that supports cultural and creative activities in India. It provides grants to artists, cultural institutions, and organizations to support projects in areas such as performing arts, visual arts, and literature.
- Rashtriya Lalit Kala Akademi (RLKA), a national academy of art that promotes Indian art and culture. It organizes exhibitions, workshops, and seminars, and provides grants to artists.
- Sangeet Natak Akademi (SNA), a national academy of performing arts that promotes Indian music, dance, and theater. It organizes performances, workshops, and seminars, and provides grants to artists.
- The Scheme for Promotion of Indian Classical Music and Dance (SPIC MACAY) is a voluntary movement that organizes programmes of classical music and dance, folk arts, crafts, yoga, meditation, and cinema in schools, colleges, and institutions across the country.
- The UNESCO’s Creative City Network programme to bring international attention:
- Mumbai has been designated as a Creative City of Films and Hyderabad as a Creative City of Gastronomy.
- Chennai and Varanasi have been included in UNESCO Cities of Music while Jaipur has been included in the City of Crafts and Folk Arts.
Way Forward
- Use the diversity and richness of India’s cultural heritage and traditions to create unique and authentic products and services that appeal to both domestic and global markets.
- Use digital technologies and platforms to enhance the accessibility, quality, and innovation of creative outputs.
- Develop collaboration and co-creation among different stakeholders in the creative economy, such as artists, entrepreneurs, researchers, educators, policymakers, and consumers.
- Tackling the challenges and gaps in the creative economy, such as the lack of data, policy support, intellectual property protection, and financing.
- For example, conducting more research on the creative industries, developing more conducive policies, strengthening the enforcement and awareness of IP rights, and providing more access to funding and investment opportunities.
Source: Hindustan Times
Practice Question
Examine the challenges and prospects linked to the expansion of creative industries in the Indian context, and provide recommendations to leverage the complete potential of creative industries for national progress. (Answer in 250 words)