Regional content, micro-influencers, and AI reshape India’s Rs 3,500 cr creator economy

New Delhi: India’s creator economy, estimated at between 3.5 and 4.5 million individuals, is powering a Rs 3,000– Rs 3,500 crore influencer marketing sector, according to Decoding Influence: The 2025 Influencer Marketing Report released by Ad-Tech platform Kofluence.

The study extracts insights from more than 1,000 creators, marketers, and industry stakeholders, offering a data-led perspective on the evolution of India’s influence landscape, including platform usage, sectoral spending, and the role of artificial intelligence.

Instagram continues to dominate as the platform of choice among creators, with an estimated 1.8 to 2.3 million Indian users monetising content on the platform. Short-form videos, particularly Reels, have emerged as the primary revenue stream. Rates vary widely, from Rs 500–Rs 5,000 for creators with fewer than 10,000 followers, to Rs 2 lakh and above for celebrities and mega influencers.

Influencer marketing budgets are increasingly aligned with sector-specific needs. E-commerce brands account for the largest share (23%) of annual spends, followed by FMCG (19%). More than 25% of surveyed brands reported allocating higher influencer budgets during launch campaigns.

The report highlights the growing importance of micro-influencers, those with 10,000 to 100,000 followers, in regional campaigns. A majority of marketers cited Diwali as the most active seasonal period, with campaign planning typically starting two to four weeks in advance.

“India's influence economy has not only seen growth but also a decentralisation of influence,” said Sreeram Reddy Vanga, CEO and Co-Founder of Kofluence. “There is a dynamic shift with creators in Tier 2 and Tier 3 cities, often creating content in regional and vernacular languages, who are building strongly engaged communities through hyperlocal narratives.”

He added, “Amidst a trillion-dollar influencer advertising opportunity in India, we’re seeing brands approach influencer partnerships with far more intention and as a strategic marketing lever, driven by data, sustained by technology, and measured against business outcomes.”

Operational efficiency and creative automation are seeing increased adoption. About 61% of brands report using tech platforms to manage influencer workflows; of these, 18% are fully integrated, while 20% are still transitioning. Generative AI has become the leading use case among marketers, with 29% employing it for content creation.

“With India crossing 900 million internet users, the creator economy is poised for continued expansion, fuelled by government initiatives as well as significant technological advancements,” said Ritesh Ujjwal, Co-Founder of Kofluence. “Looking ahead, I believe we are moving towards the phase of integrated influence in which advertising mediums will increasingly converge together.”

Ujjwal added, “Decoding Influence 2025 is built on strong platform intelligence and first-party data, and will give marketers strategic insights on a rapidly evolving industry that is being transformed by AI, cookie deprecation and shifting creator-brand relationships. We hope you will find this report useful as you plan your next steps.”