Is India’s $1 Billion Push for Influencers a Political Strategy?

Political Implications of Govt’s Direct Involvement in Influencer Economy

March 18, 2025

The Indian government’s decision to allocate $1 billion (about 8,300 crore rupees) to promote the influencer economy may not reflect just economic aspirations, but also potential political calculations. Does this initiative purely aim to expand India's digital economy, or could it subtly serve to extend ideological influence in the rapidly evolving landscape of social media?

Announced as part of a larger push toward digital inclusivity, the fund aims to provide financial support, training and infrastructure primarily to influencers from rural and underserved regions, according to The Economic Times. With India’s rural population constituting around 65% of its total population of nearly 1.4 billion, there is enormous potential to unlock untapped digital talent from these areas.

Social media platforms such as Instagram, YouTube, and regional apps like Moj and ShareChat have already enabled influencers to monetise their content effectively. India, with over 700 million active internet users as of 2023 and anticipated growth to nearly 900 million by 2025, offers fertile ground for expanding the influencer economy.

The initiative aligns seamlessly with the government’s flagship Digital India program, launched in 2015, which has significantly enhanced internet access and digital literacy. India has risen dramatically in digital connectivity, with internet penetration jumping from around 27% in 2015 to nearly 50% in 2023.

The global influencer economy, valued at roughly $16.4 billion in 2022, is projected by MarketsandMarkets to grow significantly, reaching $84 billion by 2028. India’s share, while currently modest, is expanding rapidly. With strategic investments, India has the opportunity to replicate its historic success in information technology, a sector that contributed nearly 8% to the country's GDP in 2023, according to NASSCOM.

However, the political implications of this move must also be considered. 

Over the last decade, the ruling Bharatiya Janata Party (BJP) has actively used social media platforms to shape public narratives and mobilise electoral support. Campaigns leveraging platforms like WhatsApp, Facebook and X (formerly Twitter) have become instrumental in shaping voter perceptions and directly engaging millions of citizens.

By earmarking $1 billion to directly support influencers, the government might implicitly extend its influence over the digital content ecosystem. Influencers with significant followings can shape perceptions, influence opinions and subtly sway voter attitudes—much like traditional celebrities or media figures. Financial backing could inadvertently pressure influencers into aligning their content more closely with official narratives or policies.

This subtle influence is not without global precedent. 

In China, for example, the government’s “cyber sovereignty” model systematically integrates influencers to disseminate state-approved messaging. Similarly, Russia has leveraged financially incentivised “patriotic bloggers” to shape domestic and international narratives. Domestically, allegations already exist about the BJP using organised “IT cells” to amplify supportive content and counteract dissenting voices online.

If not managed transparently, India’s influencer fund risks becoming perceived as an extension of this existing digital strategy, potentially undermining content creators’ independence. Influencers may, consciously or unconsciously, avoid topics critical of the government, fearing loss of their financial support.

Influencers need an environment where they can freely express diverse and critical viewpoints without concern for financial repercussions.

For example, in South Korea, the government’s significant but indirect support for the entertainment industry, especially through institutions like the Korea Creative Content Agency (KOCCA), has enabled an environment where independent creators thrive. This strategy has led to the explosive global popularity of Korean pop culture—“Hallyu"—including K-pop music, dramas and films. In 2022 alone, Korean cultural exports reached around $13 billion, substantially enhancing the country’s global image and soft power without overtly controlling content narratives.

In India, clear criteria must govern eligibility, distribution mechanisms and metrics for measuring success. Independent oversight committees and audits by third-party agencies could ensure that funding decisions remain impartial and merit-based.