Budget 2026: Creator economy seeks GST clarity, tax incentives and social security

New Delhi: With Union Budget 2026 due on February 1, industry voices are pushing for a clearer policy regime for India’s creator economy, i.e., clean taxation and GST clarity for digital content services, tax incentives for content-to-commerce models and creator-tech platforms, simpler compliance for creator-led micro-enterprises, and social security frameworks for gig creators.

KlugKlug and Mad Influence said Budget 2026 should treat the creator economy as a structured digital industry, arguing that clearer taxation norms and targeted incentives can accelerate formalisation and sustainable monetisation.

KlugKlug said, “Clear taxation norms, incentives for creator-tech platforms, and easier compliance for creator-led enterprises can accelerate sustainable monetisation and formalisation of the ecosystem.” 

It also flagged that monetisation remains concentrated, with only a small fraction of creators earning stable incomes, and called for policy frameworks that strengthen trust in influencer marketing and position India as a global hub for creator-led digital commerce.

Mad Influence, similarly, called for formal recognition of the creator economy as a strategic growth sector, seeking clarified GST treatment for digital content services, incentives for monetisation models that link content to commerce, and social security frameworks that bring stability to gig creators.

The push is backed by recent estimates on the sector’s scale. India is home to around 2–2.5 million active creators influencing $350 billion-plus in annual consumer spending, with creator-influenced consumption projected to cross $1 trillion by 2030, according to a BCG-led mapping of India’s creator economy. 

A Government note around the same report has also projected direct revenues from the creator ecosystem at $20–25 billion currently, expanding to $100–125 billion by the end of the decade, while creators influence over 30% of consumer decisions.

Mad Influence said only 8–10% of creators monetise effectively today, making the case for policy intervention to broaden participation and livelihoods as creator-led commerce scales. 

In India, the creator economy is also operating in an evolving compliance environment. The Advertising Standards Council of India (ASCI) has issued influencer guidance focused on disclosure and transparency in branded content, which industry executives say is critical to maintaining consumer trust as influencer marketing grows.

The sector has also drawn policy attention from the Centre. In 2025, the Government announced a $1 billion fund aimed at boosting the creator economy, with a focus on enabling capital access, skills, and global market integration, alongside the broader WAVES initiative.

Budget 2026 can help unlock the next phase of growth by easing compliance frictions, clarifying taxation treatment, enabling monetisation tools, and improving workforce security for creators who increasingly sit at the intersection of advertising, commerce, and the gig economy.