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India’s creator economy is on track to touch Rs 10,000 crore by 2030, according to Boston Consulting Group’s (BCG) report. But even as the sector shows explosive growth, Influencer Marketing (IM) experts cautioned that all is not well beneath the surface. Only Rs 7,200 crore is currently accounted for within the organised segment, with a staggering Rs 2,400 crore leaking through unregulated channels, inefficiencies, and misreporting, as per the experts' estimates.
Rather than ramping up spending, experts say brands need to urgently plug these gaps to ensure sustainable returns and accountability in influencer marketing.
Organised vs unorganised IM: A tale of two halves
The IM is split between the organised and unorganised segments. The former includes creators and agencies that operate under formal contracts, follow compliance standards, and are typically associated with structured influencer platforms. These setups offer brands trackability, transparency, and accountability.
In contrast, the unorganised sector—largely populated by independent creators, nano and micro influencers, and informal agencies—runs without oversight. Deals are often verbal, campaign results are anecdotal at best, and contractual norms are near-absent. This makes them invisible in formal estimates and difficult to regulate or monetise reliably.
Who’s making money? Spoiler alert: Not everyone
As per the BCG report only 8–10% of India’s 2–2.5 million active creators are able to monetise effectively. The vast majority are either earning a pittance or nothing at all.
The earnings gap is stark. Most creators earn less than Rs 18,000 a month. Smaller YouTubers, for instance, average just Rs 3.8 lakh annually. Meanwhile, a tiny elite—those with over a million followers, high engagement, and strong brand tie-ups—can earn upwards of Rs 50,000 a month, sometimes much more. But this cohort is minuscule.
Even for creators with decent reach, the math is sobering.
With ad rates hovering around Rs 50–Rs 200 per 1,000 views, a video clocking 1 lakh views might only generate Rs 5,500–Rs 20,000—depending on content niche and target demographics.
Platforms like YouTube Live, Moj, and ShareChat have introduced tipping features that allow fans to directly support creators. While high-engagement sectors like fashion, beauty, gaming, and entertainment dominate earnings, niche segments such as finance, education, and tech are growing steadily—especially in Tier 2 and Tier 3 markets.
Despite these challenges, creator-led content already influences $350–400 billion in annual consumer spending in India. This number is projected to touch $1 trillion by 2030, amounting to nearly a quarter of all consumer spend. Yet, direct revenue to creators stands at just $20–25 billion, leaving plenty of room for growth if the system is fixed.
Government and Brands Step In
Speaking at the Waves Summit, Indian officials pledged $1 billion towards strengthening the creator economy. Platforms and brands followed suit. YouTube CEO Neal Mohan revealed that over 100 million Indian channels uploaded content in the past year, with more than 15,000 channels crossing the one million subscriber milestone.
“YouTube has empowered creators to transform their passions into successful businesses,” Mohan said, announcing an additional Rs 850 crore to accelerate creator growth in India. The platform has already disbursed over Rs 21,000 crore to Indian creators, artists, and media companies over the last three years.
Uday Shankar, co-founder of Bodhi Tree Systems and former chairman of Star and Disney India, also spotlighted the momentum. “From my own company JioStar, we have half a billion people on the platform paying for content,” he noted. JioStar invested Rs 25,000 crore in 2024, scaling to Rs 30,000 crore in 2025, with a further increase to Rs 32,000–Rs 33,000 crore projected.
Meanwhile, Bodhi Tree Systems has partnered with Reliance to inject $1.7 billion into Viacom18, aiming to fuse premium storytelling with digital-first delivery.
Myntra too has leaned into the creator economy through its programme ‘Ultimate Glam Clan’. Launched in September 2024, it has onboarded over 5 lakh creators—67% of whom are Gen Z. While average monthly earnings remain modest at Rs 900 in Myntra credits, top performers have earned more than Rs 2 lakh in just seven months.
“The growth of this programme is a testament to the demand for authentic, user-generated content,” said Sunder Balasubramanian, CMO, Myntra. He added that engagement has risen 2% per user, with newly introduced video posts offering 2X payouts.
Where’s the money going? “The system is bleeding”
Vaibhav Gupta, Co-Founder and CPO of influencer intelligence platform KlugKlug, revealed that the estimated Rs 2,400 crore leakage is driven by three major issues: misreporting, the absence of performance tracking tools, and informal or poorly defined contracts.
“Misreporting and fraudulent practices like inflated follower counts and fake engagement metrics mislead brands into investing in underperforming campaigns,” Gupta told TOI. “The absence of performance tracking tools and informal contracts often lead to inconsistent deliverables and legal disputes.”
He added that in sensitive sectors like finance, brands dealing with unregistered or non-compliant influencers face reputational damage and possible regulatory penalties.
Tech blind spots, regulatory vacuum
Industry stakeholders agree that fixing inefficiencies isn’t just about better ROI—it’s about overhauling the ecosystem. “Technological limitations are a major hurdle,” said one expert. “Many brands still lack access to real-time analytics and fraud detection platforms. That makes effective monitoring nearly impossible.”
The absence of a regulatory framework only compounds the problem. In the unorganised segment especially, non-compliance remains rampant due to the lack of enforcement mechanisms.
Standardisation and compliance: The missing links
Gupta also stressed the need for contract standardisation across the sector. “A lack of standardised contracts creates ambiguity around payments, deliverables, and campaign goals,” he said. “This leaves room for miscommunication and disputes.”
He pointed out that even brands aren’t blameless. Many do not conduct adequate due diligence when selecting influencers or tracking campaigns, which leads to wasteful spending and poor outcomes.
The fix? Formalising the informal
But Gupta insists that the problem isn’t the unorganised sector itself—it’s the lack of structure within it. “If formalised properly, micro and nano influencers—those with 10K to 50K followers—can actually offer better ROI than celebrity endorsements,” he said.
“What’s needed is a framework that includes contracts, performance metrics, and compliance standards. This not only enhances accountability but also helps brands tap into niche communities more effectively.”
“Most agencies are dying—and don’t even know it yet”
Ayush Shukla, Founder of Finnet Media, offered a harsh critique of the influencer marketing agency landscape.
“If you think running campaigns and closing deals will keep you alive, think again,” he warned. “Most agencies are failing because they’ve forgotten the core of influencer marketing: real influence.”
He cited three fatal flaws: picking creators who can’t actually influence, blindly taking briefs without offering strategic input, and focusing only on views. “If all you’re getting is views, you’re running ads. And brands can do that without you,” Shukla said.
He believes the future of IM lies beyond short-term metrics. “It’s about impact—building trust, shaping perception, and driving long-term brand love.”
India’s creator economy has the momentum, the market, and the money. But to turn potential into performance, the sector must close its efficiency gaps, embrace transparency, and prioritise long-term value over vanity metrics. Only then can the industry sustain its projected growth—and deliver on its promise of becoming a true economic engine.
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