India’s cultural economy could be a Saviour

Context

An excellent opportunity to reorganize, reconstruct, revamp and rejuvenate the Creative and Cultural Economy (CCE).

Background

The Covid-19 pandemic is having an unprecedented impact on the creative economy worldwide. During the Covid-19 pandemic the creative industries face an uncertain future. Individuals and organizations, both are in distress and facing challenges for survival. The creative economy will be very different in the aftermath of Covid-19 and some sectors may be decimated, which may further ticking by the India's annual growth for Financial Year 2019-20, to 4.2%, the lowest since 2008.

Geographical Distribution

In 29 states and 7 UTs, the industries of creative economic sector widely spread. Mumbai, Delhi, Kolkata and Chennai are major city-hubs for culture of national significance to creative economy. Second and third metros such as Pune, Bengaluru, Hyderabad, Chandigarh and Ahmedabad are also significant centres for culture. Taken together, 24% of organizations work in city or state geographies, 67% nationally and 9% internationally.

Challenges Facing By CCE Industries

• Social and economic policies are mostly ignored the CCE and people dependent on these industries.
• Support of the State to CCE industries is negligible.
• Infrastructural shortcomings make it nearly impossible to ensure profit margins.
• Support from the private sector is there, but is unreliable and less to survive.
• Rigid Corporate Social Responsibility (CSR) rules, hinder the external donations.

Impact of COVID-19 on CCE Industries

• The creative sector consists of Micro, Small to Mid-size Enterprises (MSMEs)and the self-employed, who make up 88% of the sector. While self-employed workforce organizations with 2 to 10 workers make 74%; they are, by contrast, both vulnerable and agile. It is likely of facing loss nearly 50% of annual income and may results to shut many organizations.
• Temporary disruptions and cancellations of huge number of decided events due to nationwide lockdown and restricted movement caused the loss of income since March, 2020. Reports also mentioned that the Events and Entertainment Management Association (EEMA) companies wherein 53% organizations had cancelled 90% of their business in last three months.
• There is serious threat to individual livelihoods and MSME businesses, artist fees, teaching and workshop fees and professionals’ service and consulting fees generally form a large part of individuals and micro enterprises revenue streams. Combining all three lost incomes sources amounts to 43% of total revenue.
  Support Measures
• The MSME parts of the sector could benefit from working together to galvanise support to collectively bid for government funds.
• Industry needs short-term financial relief, it would be used to keep freelancers and organizations viable as going concerns to which 80% would use it to offset lost income, on staff costs and for other immediate business needs.
• Ensure health coverage to artists under Ayushman Bharat or the Central Government Health Scheme.
• Investing in digital infrastructure that can help artists take their work online.

Steps Taken

• Announcement of two-month financial aid for artists by Kerala Government.
• The stay IN LIVE initiative aims to build support for the gig workers in the performing arts economy via three way educate, inspire and support. It was initiated by a group of individuals and organisations who share a common belief.

Conclusion

Certainly CCE sector is at the verge of fall and immediate support is the need of the hour. It is a real opportunity to boost the cultural economy that helps millions of performers in sustaining themselves without having to migrate for other temporary jobs.

Nurturing the creative arts can help strengthen India's economy. It can also increase our soft power simultaneously.

Connecting the Article

Question for Prelims

With reference to the Creative and Cultural Industries, consider the following statements:

1. These industries are associated only with artistic works.
2. These industries fall outside the purview of Corporate Social Responsibility (CSR) norms.

Which of the Statements given above is/ are correct ?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question for Mains

Discuss the role of Creative and Cultural Economy (CCE) for social and economic welfare.