India's creator economy is rapidly evolving from an experimental marketing space into a more structured and regulated industry, according to a new report released by Kofluence.
The report, titled Decoding Influence: Annual Research Report 2026, analyses data from more than 2 million creators, over 1,000 surveys and interviews with industry professionals to map key trends shaping the influencer ecosystem in India.
According to the study, India's influencer marketing sector is currently valued between ₹3,000 crore and ₹3,500 crore and is projected to grow to ₹4,500 crore-₹5,000 crore by 2027. The report attributes this growth to increasing brand investments, creator professionalisation and wider adoption of formal business practices.
One of the major shifts highlighted in the report is the growing formalisation of the creator economy. Around 15 per cent of India's active creators are now registered as businesses or GST entities, signalling a move towards more structured partnerships between brands and influencers.
The report estimates that India currently has between 4 million and 4.4 million active creators, with Instagram continuing to dominate the ecosystem. Nano creators — those with follower counts between 1,000 and 10,000 — account for the largest share of creators and are increasingly being used by brands for targeted audience engagement.
Regional markets are also emerging as key growth drivers. The report noted a rise in influencer campaigns focused on Tier 2, Tier 3 and Tier 4 cities, with more than 62 per cent of creators reporting increased demand for regional and vernacular content collaborations.
The findings suggest that campaigns in smaller cities are delivering higher engagement rates at lower costs compared to metro markets, making regional creators increasingly attractive for brands looking to optimise marketing spends.
The report also points to growing accountability in influencer marketing. More brands are now linking influencer campaigns directly to measurable business outcomes, including revenue and return on investment. Long-term creator partnerships were found to generate better results compared to one-off campaigns.
Artificial intelligence is playing a larger role across the industry as well. Nearly 59 per cent of creators surveyed said they regularly use AI tools for content ideation, creative design, trend analysis or scheduling, while brands are increasingly using AI for creator discovery and campaign management.
At the same time, tighter regulations are reshaping the sector. The report highlighted that ASCI disclosure norms, SEBI scrutiny of finfluencers and India's Digital Personal Data Protection (DPDP) framework are pushing the industry towards greater transparency and compliance.
The report concludes that influencer marketing in India is increasingly being treated as a mainstream business function rather than a purely experimental branding tool, with creators, agencies and brands adapting to a more regulated and performance-driven environment.
