Economic Survey pitches Orange Economy as emerging growth lever

As per estimates of the Ministry of Tourism, travel and tourism contributed 5.22% to GDP in FY24, close to pre-pandemic levels, while supporting an estimated 8.46 crore direct and indirect jobs

The Economic Survey has pitched live concerts and entertainment events as high-multiplier, services-intensive activities that generate economic value beyond ticket sales by supporting tourism, employment, and urban services. Termed the Orange Economy, driven by creativity, culture, and intellectual property, the survey pegged it as an emerging lever of growth for media, tourism, and allied services. The survey also proposed opening up heritage monuments for such events and facilitating visa and foreign exchange permissions for foreign performers or artists.

 

Live entertainment has rebounded strongly since the Covid-19 pandemic, crossing Rs 100 billion in 2024 and generating spillovers. In India, the concert economy is nascent but is consistently scaling, supported by a young population, rising incomes, digital ticketing platforms, and improving urban infrastructure, the survey said. Last year, British rock band Coldplay performed five sold-out concerts across Mumbai and Ahmedabad. This year, American rock band Linkin Park and singer John Mayer are the highlight events. However, there continues to be a lack of live event venues and restrictions on foreign payments that can be made to artists coming from abroad.

 

 

“Considering that the Ministry of Information and Broadcasting is working on a single-window mechanism for live entertainment permissions, including those needed from state governments,” it added, while pointing out that anywhere between 10 and 15 clearances are currently required.

 

“With appropriate facilitation and integration into tourism and city-branding strategies, the concert economy can become a meaningful driver of growth for media and entertainment, tourism, and allied services,” the survey added.

 

The survey alluded to international evidence showing that live concerts generate economic value beyond ticket sales. Globally, live music accounts for about one-third of total music revenues. Concerts also serve as short-duration tourism demand amplifiers, being labour-intensive and creating jobs across various sectors, including event operations, logistics, hospitality, security, and media, particularly for young people and creative professionals.

 

According to UNCTAD estimates, the creative industries contribute between 0.5 per cent and over 7 per cent of GDP across countries, underscoring the significant potential of live entertainment, the survey stated.

 

As per estimates of the Ministry of Tourism, travel and tourism contributed 5.22 per cent to GDP in FY24, close to pre-pandemic levels, while supporting an estimated 8.46 crore direct and indirect jobs.

 

The survey further pointed out that India has significant untapped potential in niche tourism segments. The development of long-distance hiking trails, comparable to the Appalachian or Camino trails, can leverage the country’s ecological diversity, cultural heritage, and existing pilgrimage, forest, and river corridors. The vast coastline, meanwhile, can see the development of modern marina infrastructure offering water-based tourism facilities.

 

“Realising tourism potential in different regions and converting it into sustained economic outcomes, however, depends critically on implementation capacity at the state and local levels. Experiences across states underscore the importance of administrative capacity and coordination across districts,” the survey stated.

 

Gujarat’s infrastructure-led and event-based tourism initiatives illustrate the gains from coordinated planning and execution across departments, while Kerala’s state-led destination management and community participation support an ecologically appropriate and responsible tourism model, the survey pointed out, adding that Sikkim’s focus on sustainability and regulated visitor numbers illustrates how effective regulation and community involvement can preserve destination quality.

 

“Tourism requires the creation of niche segments, such as long-distance hiking trails, and a national marina development policy to unlock the blue economy. Streamlining permissions for live events, opening up heritage venues, and facilitating foreign artist participation will help realise the potential of the concert and Orange economies,” the survey pointed out.

 

Domestic tourism, the survey stated, remained the backbone of the sector, with visits increasing by nearly 52.7 per cent during January–September 2025 compared with the corresponding period last year.

 

Foreign tourist arrivals, however, remained below pre-pandemic levels, declining by about 11.8 per cent during the January–October 2025 period relative to the same period of the previous year.