Why in the news?

India has a rich history of creativity across fields like art, science, and medicine. To achieve its $5 trillion goal, it must refresh its innovation approach by encouraging creativity everywhere.

What is the creative economy?

The creative economy includes industries driven by creativity, culture, knowledge, and innovation, like art, design, media, software, and research, generating income, jobs, and exports through intellectual and cultural capital.

What is the situation of the Global creative Economy?

Global Creative Economy (2022): Creative services exports reached $1.4 trillion (29% rise since 2017), goods at $713 billion, together generating over $2 trillion annually and supporting 50 million jobs.
Key Sectors (UNCTAD 2024): Software services (41.3%), research and development (30.7%), and advertising, market research, and architecture (15.5%) are major contributors to the global creative economy.
India’s Contribution: In 2019, India’s creative exports totaled $121 billion, with services making up $100 billion. As of 2024, the sector is valued at $30 billion, employs 8% of the workforce, and saw a 20% growth in exports.

What factors drive India’s growing creative economy and its $5 trillion ambition?

Diverse Creative Sectors: India has a rich tradition of creativity across various fields such as arts, design, science, medicine, and technology. This diverse pool of creativity serves as a foundation for innovation. Eg: The design sector, accounting for 87.5% of India’s creative goods exports, showcases India’s global leadership in design innovation.
Increasing Global Demand for Creative Goods and Services: The global market for creative services has surged, and India’s growing export of creative goods and services is capitalizing on this demand. Eg: In 2022, India’s creative exports grew by 20%, reaching over $11 billion, indicating the sector’s expanding international reach.
Technological Advancements: Investment in technology and software services is one of the primary contributors to India’s creative economy. As technology integrates into creative fields, it opens up new possibilities for innovation. Eg: Software services make up 41.3% of the global creative economy, positioning India as a leader in IT and creative technological services.
Grassroots Innovations: India’s grassroots innovations, often solving local challenges, are a significant driver of the creative economy. These innovations have the potential to scale up and contribute to economic growth. Eg: Innovations like the “mitti cool clay refrigerator” and pedal-operated washing machines showcase India’s strength in developing frugal, sustainable innovations that can be scaled.
Government Initiatives and Investments: The Indian government’s support for creative industries, such as through initiatives like “One District One Innovation,” helps nurture local creativity and turn it into large-scale economic impact. Eg: The government’s focus on intellectual property protection and encouraging local creative ideas through programs like GIAN (Grassroots Innovations Augmentation Network) enables broader commercialization of grassroots innovations.

Why is bridging the gap between creativity and innovation essential in India?

Ideas to Scalable Products: Creativity generates ideas, but innovation turns them into products. Bridging the gap ensures ideas are transformed into commercially viable solutions. Eg: The “mitti cool clay refrigerator” needs innovation for mass production.
Maximizing Economic Impact: Bridging the gap helps scale innovations, creating jobs and boosting economic growth. Eg: The pedal-operated washing machine requires innovation to reach larger markets.
Enhancing Global Competitiveness: Converting creative ideas into innovative products boosts India’s global market presence. Eg: India’s design sector can thrive by innovating creative concepts into market-ready products.

What are the steps taken by the Indian government?

One District One Product (ODOP) & One District One Innovation (ODOI): Promotes unique local products and innovations from each district to boost local economies and generate employment. Eg: ODOP has helped districts like Bhadohi in Uttar Pradesh gain recognition for carpet weaving, integrating traditional creativity with global markets.
Startup India and Atal Innovation Mission (AIM): These initiatives foster innovation by supporting startups with funding, mentorship, and infrastructure. Eg: AIM’s Atal Tinkering Labs in schools promote problem-solving and innovation from a young age, nurturing future innovators.
Support for Intellectual Property Rights (IPR): Government has simplified patent filing, reduced fees for startups, and launched awareness programs to protect grassroots innovations. Eg: The National IPR Policy 2016 encourages creators, especially in rural India, to safeguard and monetise their innovations.

How can grassroots innovations be scaled up for commercial success? (Way forward)

Improved Manufacturing Processes: To scale grassroots innovations, cost-effective and efficient manufacturing processes must be developed to meet larger market demands. Eg: The “mitti cool clay refrigerator” needs affordable mass production techniques to reduce costs and increase accessibility.
Protection of Intellectual Property: Innovators need intellectual property (IP) protection to prevent replication and ensure fair returns from their ideas. Eg: IP protection for local innovations like the “amphibious bicycle” ensures exclusive market rights and encourages investment.
Market Research and Consumer Feedback: Conducting market research and incorporating consumer feedback helps tailor grassroots innovations to meet the needs of a broader audience. Eg: The “mitti cool” refrigerator could be adapted to different regional needs based on customer feedback.
Government Support and Policy Frameworks: Government policies and initiatives can help create an ecosystem for scaling grassroots innovations by providing infrastructure, legal support, and incentives for innovation. Eg: Programs like “One District One Innovation” could support scaling local innovations like sustainable farming tools across regions.

Mains PYQ:

[UPSC 2018] What is the significance of Industrial Corridors in India? Identify industrial corridors, explain their main characteristics.

Linkage: The concept of industrial corridors emphasizes infrastructure development and sector-specific growth. Similarly, developing robust ecosystems and infrastructure for creative industries is a crucial pathway for the growth of India’s creative economy, aligning with the need for support and formalization discussed in the article.

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