This action comes in the wake of recent scandals, such as the government's response to YouTuber Ranveer Allahbadia's comments and worries about influencers deceiving investors
Influencers are individuals who create digital content and leverage their presence on social media platforms such as Instagram and YouTube to influence opinions, lifestyles, and consumer choices. In India, the number of influencers has dramatically increased to over 4 million in 2025, a significant rise from fewer than 1 million in 2020, as reported by the influencer marketing platform Qoruz.
The primary sectors contributing to this growth include fashion, gaming, and arts & entertainment, with fashion leading at 470,000 influencers, followed closely by gaming at 467,000 and arts & entertainment at 430,000. These influencers, each possessing more than 1,000 followers on Instagram, produce specialized content to engage their audiences effectively. The influencer marketing sector in India is anticipated to expand from ₹2,344 crore in 2024 to ₹3,375 crore by 2026, aligning with Prime Minister Narendra Modi's vision of enhancing the creator economy to support the goal of a $5-trillion economy.
The rapid growth of social media and increased internet access in both urban and rural regions have fueled the rise of influencers. The availability of affordable smartphones and data plans, particularly in non-metropolitan areas, which account for 65% of the user base, has facilitated content consumption and allowed individuals from various backgrounds to establish online influence.
Brands are increasingly recognizing influencers not merely as endorsers but as strategic collaborators who provide genuine and impactful content. However, there is a pressing need to regulate influencer marketing due to the surge in monetized content, which often lacks necessary disclosures, blurring the distinction between personal opinions and advertisements. Additionally, consumer protection is at risk as misinformation regarding health, finance, or product effectiveness can mislead audiences. Concerns regarding data privacy arise from the potential misuse of audience data and inflated metrics, undermining transparency. The emergence of AI influencers, including deepfakes and non-human entities, introduces new ethical challenges. Furthermore, vulnerable audiences, particularly children and teenagers, are susceptible to harmful trends and content.
Fundamental Aspects of the IIGC Code of Standards: Paid Partnerships necessitate that influencers disclose any material affiliations with brands, including financial arrangements and affiliate marketing commissions. AI Influencers are mandated to follow the same regulations as their human counterparts, with an additional requirement to indicate their non-human status.
The use of deepfake technology to create AI influencers that mimic real individuals is strictly forbidden. Influencers are prohibited from endorsing products or brands they do not authentically support or from promoting competing brands simultaneously, thereby ensuring authenticity and preventing misleading endorsements.
The term 'Defluence' is defined as the act of publicly criticizing or negatively commenting on a brand, product, or service, with a requirement for influencers to ensure their critiques are honest, accurate, and devoid of personal attacks. The code explicitly forbids both overt and subtle discriminatory content in influencer marketing, mandating that all content be inclusive and respectful of diverse identities.
Influencers are tasked with creating content that is safe, positive, and suitable for children, underscoring their responsibility, particularly when their content may be accessible to younger viewers. Regarding Sexual Content and Nudity, the code advises influencers to approach such topics with responsibility and sensitivity, permitting discussions in educational, artistic, or health-related contexts, but prohibiting exploitative or inappropriate representations that violate community standards. A consumer complaint forum has been established under the IIGC to provide a channel for addressing grievances related to influencer content and potential breaches of the code.
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