TLDR: India’s creator economy, valued at Rs 3,000-3,500 crore, is undergoing a significant transformation driven by the rise of regional content, the growing influence of micro-influencers, and the increasing adoption of Artificial Intelligence. A new report by Kofluence highlights a decentralization of influence, with creators in Tier 2 and Tier 3 cities leveraging vernacular content to build engaged communities. AI is becoming a foundational tool for both creators and marketers, streamlining operations and enhancing content creation, while Instagram and short-form videos remain dominant platforms.
New Delhi, India – India’s burgeoning creator economy, currently estimated to be powered by 3.5 to 4.5 million individuals, has solidified its position as a formidable force, fueling an influencer marketing sector valued between Rs 3,000 and Rs 3,500 crore. This dynamic growth is detailed in the ‘Decoding Influence: The 2025 Influencer Marketing Report’ released by Ad-Tech platform Kofluence, drawing insights from over 1,000 creators, marketers, and industry experts.
The report underscores a pivotal shift towards regional content and the burgeoning impact of micro-influencers. Sreeram Reddy Vanga, CEO and Co-Founder of Kofluence, noted, “India’s influence economy has not only seen growth but also a decentralisation of influence. 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.” This decentralization is evident as 52% of marketers now rely on micro-influencers (those with 10,000 to 100,000 followers) for culturally resonant regional campaigns.
Artificial Intelligence (AI) is emerging as a critical enabler across the ecosystem. The report reveals that 29% of marketers are already utilizing generative AI for content creation, making it the leading AI application in the influencer space. Furthermore, approximately 76% of creators engage with AI in some form, leveraging it for ideation, trend tracking, optimizing posting schedules, and video editing. Vanga emphasized AI’s foundational role, stating, “AI has moved beyond experiential to now a foundational enabler that supports nearly every major shift in the creator ecosystem, from short-form video and regional content to performance-driven campaigns.” Marketers are increasingly relying on AI to streamline operations, predict performance, and decode market patterns.
Instagram continues its dominance as the platform of choice, with an estimated 1.8 to 2.3 million Indian creators actively monetizing content. Short-form video content, particularly Instagram Reels, has become the preferred format for monetization. Creator earnings vary significantly, ranging from Rs 500–Rs 5,000 per reel for those with fewer than 10,000 followers, to upwards of Rs 2 lakh for mega influencers and celebrities.
From a brand spending perspective, e-commerce brands account for the largest share of annual influencer budgets at 23%, closely followed by the Fast-Moving Consumer Goods (FMCG) sector at 19%. Over a quarter of surveyed brands reported allocating higher influencer budgets specifically during product and service launch campaigns, highlighting the format’s increasing impact on brand discovery and conversions. Diwali remains the peak season for campaign rollouts, with most brands initiating planning two to four weeks in advance.
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Technological adoption is also on the rise, with 61% of brands surveyed using digital platforms to manage influencer operations. Ritesh Ujjwal, Co-Founder of Kofluence, highlighted the broader implications: “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.” He added that the ‘Decoding Influence 2025’ report provides strategic insights into an industry being transformed by AI, cookie deprecation, and evolving creator-brand relationships. The Indian government’s $1 billion creator fund, announced in March 2025, is expected to further empower regional creators and potentially position India as an export power in global creator markets.
