India’s influencer marketing sector to grow 25% in 2025, here are the details

India’s influencer marketing industry is poised for another year of robust growth, with projections suggesting a 25 per cent surge in 2025, taking the total market value to $540 million (₹4,500 crore).

The growth comes on the heels of a transformative year in 2024, when the sector was valued at $432 million (₹3,600 crore), according to the newly released India Influencer Marketing Report 2025 by The Goat Agency (WPP Media) and Kantar.

The report, released on Wednesday, captures the rapid evolution of India’s digital creator economy, citing shifting brand priorities, consumer trust, and supportive government initiatives as key accelerators. It also comes at a time when Prime Minister Narendra Modi has publicly acknowledged the significance of digital creators in shaping India’s cultural and economic narrative.

What does the report say?

India’s influencer economy has matured from a numbers game to a credibility-led ecosystem. As per the report, 70 per cent of Indian brands now cite trust and credibility as their top reasons for engaging with influencers, surpassing earlier concerns around reach and follower count.

One of the most striking trends is the shift from quantity to quality. Among manufacturing brands, 85 per cent prioritise content quality over follower base when selecting collaborators. At the same time, 72 per cent of brands are seeking long-term partnerships with creators rather than short-lived campaign tie-ins.

“Today’s consumers aren’t just buying products, but they are buying into stories, communities, and creators they trust,” said Ashwin Padmanabhan, chief operating officer, WPP Media, South Asia, in a statement. “With sharper content, stronger metrics, and a renewed focus on credibility, influencer marketing in India is moving towards maturity.”

Over the past year, more than 20 mergers and acquisitions have taken place in the Indian media and marketing landscape, with agencies bolstering their influencer marketing divisions.

This reported consolidated has allowed traditional firms to compete with digital-first players and offer full-service solutions to clients increasingly focused on brand safety and content control.

The report noted that 95 per cent of brands now prefer macro-influencers, not just for their reach, but for greater reliability in content alignment, especially in regulated industries like finance, health and education.

Micro-influencers rise in high-consideration sectors

While macro-influencers dominate brand preferences, micro-influencers are gaining serious traction in sectors like automotive and consumer durables, where purchase decisions are complex and trust-driven. The report stated that 85 per cent of marketers in these verticals plan to increase investments in niche influencers who can offer product expertise and closer audience engagement.

“Influencer marketing in India is no longer just about reach—it’s about relevance, resonance and results,” said Puneet Avasthi, director, specialist businesses, insights division, Kantar. “The future belongs to brands that treat influencers as strategic collaborators, not just content amplifiers.”

Influencers shaping consumer journeys

From a consumer perspective, the role of influencers has grown exponentially in shaping purchase decisions. The report highlights that over two-thirds of Indian users now rely on influencers for product discovery, information and purchase triggers.

This impact is especially pronounced among Gen Z and Tier 2 & 3 audiences, who often skip traditional advertising and look to platforms like YouTube, Instagram Reels, Moj, and LinkedIn for trusted recommendations.

PM Modi’s endorsement and the $1 billion creator fund

The sector’s momentum is not purely private-driven. The Indian government’s active role in nurturing content creators has added weight to the industry. In 2024, Prime Minister Narendra Modi, during his annual Mann Ki Baat address and later at the Creator Economy Conclave, described digital creators as “the cultural ambassadors of New India.”

PM Modi also announced the creation of a $1 billion fund aimed at boosting innovation, production quality, and global reach among Indian creators. The move was widely seen as a direct acknowledgement of the sector’s contribution to the economy and its potential for soft power projection.

India vs the world: How global growth compares

India’s influencer industry is expanding faster than the global average. As per Statista, the global influencer marketing market is expected to grow at a 17 per cent CAGR, reaching $28.3 billion (₹2.36 lakh crore) by the end of 2025.

India, by comparison, is growing at 25 per cent annually, driven by strong government support, mobile-first content consumption, and the rise of vernacular creators. The creator economy in India is also seen as more agile due to its younger demographic and rapid digital adoption, as noted by Bloomberg.

With over 8 crore digital creators as of 2024, according to NITI Aayog, India is set to play a leading role in shaping the next phase of global digital influence, where culture, commerce and community intersect in real-time.

Outlook for 2025 and beyond

With Indian creators becoming increasingly professional and performance-driven, and with brands doubling down on authenticity and engagement, India’s influencer economy appears set for its most structured phase of growth yet.

As the line between commerce, community and content continues to blur, 2025 could be a landmark year for the industry—one where trust, talent and technology converge to define the future of Indian marketing.

(With inputs from the agencies)