Budget 2026: Nirmala Sitharaman Bets On Orange Economy, Big Push For Animation, Gaming And VFX

The Budget 2026 is here, and the push for gaming and other creative domains is real. Union Finance Minister Nirmala Sitharaman on Sunday said India's creative industries could serve as a new domain for jobs and services to boost the Orange Economy in the Union Budget for 2026-27. Sitharaman said, 'Orange economy. India's animation, visual effects, gaming and comics (AVCG) sector is a growing industry projected to require 2 million professionals by 2030. I propose to support the Indian Institute of Creative Technologies Mumbai in setting up AVCG content creator labs in 15,000 secondary schools all over the country and 500 colleges.'The Proposal is based on the themes highlighted in the Economic Survey of 2025-26, that says that the creativity-led

sectors, consisting of culture, entertainment, media, and intellectual property, could become the main source of employment, tourism, and urban services. For those who are unaware, the Orange economy comprises activities that are primarily from artistic expressions, ideas, and cultural capital instead of physical goods.Union Budget 2026 Tax Updates: Tax Holiday Till 2047 For Global Cloud; TCS & TDS Cuts Explained

What The Experts Have To Say?

Tarun Pathak, Research Director at Counterpoint Research, said, "The shift toward an 'Orange Economy' (creative/IP-driven) in this budget is a strategic move to transition India from a consumer of global content to a high-value producer. The proposal to establish AVGC Content Creator Labs in 15,000 schools and 500 colleges is a visionary step that builds India’s grassroots talent pipeline for the creative industries. While not explicitly focused on AR or XR, the initiative’s scale, aiming to skill 2 million professionals by 2030, will indirectly strengthen immersive technology adoption by equipping students with digital content creation skills that naturally extend into AR/XR applications. With IICT’s leadership, this effort can democratize access to modern tools, spur innovation, and position India as a global hub for AVGC-XR and the broader creative economy."