India’s creator economy is evolving from a largely experimental space into a more organised, measurable and commercially driven industry. This is according to Kofluence’s latest research report.
The company’s “Decoding Influence: Annual Research Report 2026” explains how influencer marketing in India is being transformed by artificial intelligence, tighter regulations, regional content expansion and increasing pressure on brands to deliver measurable outcomes. The report draws insights from over 2 million creators and more than 1,000 survey responses. It also includes interviews with 50+ industry experts.
India’s Influencer Marketing Industry Continues to Expand
Kofluence estimates that India’s influencer marketing sector will be valued between INR 3,000 crore and INR 3,500 crore in 2025. By 2027, the market is projected to grow to INR 4,500 crore–INR 5,000 crore. This will be supported by a compound annual growth rate of 22%.
According to the report, influencer marketing is no longer viewed solely as a branding exercise. Companies are increasingly treating creator collaborations as performance-focused business activities tied to measurable commercial goals rather than isolated promotional campaigns.
Creators Are Operating More Like Businesses
A major takeaway from the report is the rising professionalisation within the creator ecosystem. Kofluence estimates India currently has between 4 million and 4.4 million active creators. Instagram remains the dominant platform, hosting roughly 3.3 million to 3.7 million creators.
The report further reveals that 15.2% of creators are now registered either as formal business entities or GST individuals. This reflects a growing readiness among creators to handle structured brand deals, legal agreements and larger enterprise partnerships.
Nano creators still make up the backbone of the ecosystem. Creators with follower counts between 1,000 and 10,000 account for 61.1% of surveyed participants. This shows the continued importance of smaller, niche communities in influencer campaigns.
Regional and Vernacular Content Is Growing Rapidly
Kofluence also highlighted increasing opportunities beyond India’s metro cities. With India surpassing 900 million internet users, brands are placing greater emphasis on regional-language and hyper-local campaigns.
More than 62% of surveyed creators reported a rise in regional-language campaign opportunities. This indicates that brands are actively expanding beyond English-speaking metro audiences. They aim to engage consumers across Tier 2, Tier 3 and Tier 4 markets.
The report also suggests that campaigns targeting smaller cities may deliver stronger engagement at lower costs. While metro campaigns typically generate engagement rates between 3% and 4%, campaigns in Tier 3 and Tier 4 cities see engagement levels between 4.5% and 5.5%. These higher rates often come with significantly lower campaign spending.
Brands Are Increasingly Focused on ROI
The report points to a stronger emphasis on accountability in influencer marketing. Around 13.3% of brands now directly tie influencer marketing budgets to revenue targets. Meanwhile, 46.4% assess outcomes individually for each campaign.
Long-term creator partnerships are also becoming more popular. According to the study, 62% of brand professionals believe ongoing collaborations produce better ROI compared to short-term campaigns.
Instagram remains the leading influencer marketing platform in India, with 93.1% of brands identifying it as their primary channel. In terms of industry spending, e-commerce leads at 23%, followed by FMCG at 19%.
AI Is Reshaping Creator Workflows
Artificial intelligence is now playing a central role in the creator ecosystem. Kofluence found that 59% of creators either regularly or occasionally use AI tools for tasks such as content ideation, creative design, scheduling and trend analysis.
Content ideation emerged as the most common AI use case at 64.4%, followed by creative design at 31.9% and trend analysis at 28.1%. Meanwhile, 61% of marketers are exploring technology platforms to improve creator discovery, campaign management and performance forecasting.
The findings suggest that AI is no longer limited to improving creator productivity. It is becoming a core part of the broader influencer marketing infrastructure, helping brands and creators scale campaigns more effectively.
Regulation Is Driving Greater Accountability
The report also emphasises the growing role of regulation in shaping influencer marketing practices. Policies and developments such as ASCI disclosure guidelines, SEBI’s scrutiny of finfluencers and India’s DPDP Act, are encouraging stronger compliance standards across creators, brands and platforms.
As the industry becomes more formalised, transparency and governance are expected to play a critical role in maintaining trust between creators and brands.
What the Findings Mean for India’s Creator Economy
Kofluence’s report indicates that India’s creator economy is entering a more mature phase. Creators are increasingly functioning as businesses. Brands are prioritising measurable outcomes. AI is improving operational efficiency and regulation is creating clearer industry standards.
For brands, influencer marketing is shifting beyond awareness-building and evolving into a performance-driven channel powered by data, compliance, regional targeting and long-term creator partnerships.
For creators, this transformation opens up larger opportunities while also bringing higher expectations around professionalism, transparency and measurable impact.
