India’s Creator Economy Could Reach ₹5,000 Crore By 2027: Kofluence

Kofluence has released its “Decoding Influence: Annual Research Report 2026,” highlighting what it describes as a structural shift in India’s creator economy from an experimental ecosystem into a formalised and regulated industry.

The report draws insights from more than 2 million creators, over 1,000 surveys and interviews with more than 50 industry professionals.

According to the study, India’s influencer marketing sector is currently valued at ₹3,000-3,500 crore in 2025 and is projected to grow to ₹4,500-5,000 crore by 2027, supported by deeper brand integration, creator professionalisation and increased operational standardisation.

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Regional Creators Drive Industry Growth:

The report said the creator economy is increasingly being treated as a measurable business function rather than an experimental marketing channel.

One of its key findings was the growing formalisation of the creator ecosystem. Kofluence estimates India now has between 4 million and 4.4 million active creators, with Instagram continuing to dominate as the primary creator platform.

According to the report, 15.2% of creators are now registered as business entities or GST individuals, which Kofluence described as becoming the new standard for enterprise-level brand partnerships.

The study also highlighted the rising importance of regional creators and non-metro markets. With internet penetration crossing 900 million users, Tier 2, Tier 3 and Tier 4 cities are emerging as key growth centres for influencer marketing.

More than 62% of creators surveyed reported increased demand for regional and vernacular-language campaigns. Kofluence also found that smaller cities deliver higher engagement rates at lower campaign costs compared to metro markets.

The report further noted growing accountability around influencer marketing investments. Around 13.3% of brands now directly connect influencer spending to revenue targets, while 46.4% measure performance campaign by campaign.

It also found that 62% of brand professionals believe long-term creator partnerships generate stronger returns than short-term collaborations, while 93.1% of brands continue prioritising Instagram as their primary influencer marketing platform.

Check the annual report here...

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AI Drives Creator Workflows:

On the technology front, the report found that artificial intelligence is increasingly becoming embedded within creator and campaign workflows.

According to Kofluence, 59% of creators regularly or occasionally use AI tools for content ideation, design, scheduling and trend analysis.

The report also highlighted growing regulatory oversight across the creator economy through measures such as Securities and Exchange Board of India action against finfluencers, updated disclosure guidelines by Advertising Standards Council of India and the implementation of the Digital Personal Data Protection Act.