DPIIT Partners with KRAFTON India to Power Next-Gen Startups in Gaming, AI, and Digital Entertainment

The MoU lays out a comprehensive support framework aimed at reducing barriers for early-stage and growth-stage startups.

 In a major boost to India’s fast-growing digital and creative economy, the Department for Promotion of Industry and Internal Trade (DPIIT) has signed a strategic Memorandum of Understanding (MoU) with KRAFTON India Pvt. Ltd., marking a significant step toward nurturing innovation in gaming, esports, and emerging technologies.

The partnership aims to accelerate the growth of product-based startups working across high-potential sectors such as digital entertainment, online gaming, esports, interactive media, and artificial intelligence (AI)—industries that are rapidly redefining global digital ecosystems.

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Strengthening India’s Digital Innovation Pipeline

India is currently home to over 1.2 lakh recognised startups, with the gaming and digital entertainment sector witnessing exponential growth. Industry estimates suggest that:

• India’s gaming market could surpass $8–10 billion by 2028

• The country has over 500 million gamers, making it one of the largest gaming markets globally

• AI and immersive technologies are expected to contribute significantly to India’s $1 trillion digital economy vision

Against this backdrop, the DPIIT–KRAFTON collaboration is designed to create a structured innovation pipeline, enabling startups to move from ideation to commercialization more efficiently.

Joint Secretary, DPIIT, Shri Sanjiv, emphasized the strategic importance of such partnerships:

“This collaboration represents a critical step in strengthening India’s digital and creative economy. It will enable startups to innovate, scale, and build globally competitive solutions in emerging technology domains.”

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What the Partnership Offers Startups

The MoU lays out a comprehensive support framework aimed at reducing barriers for early-stage and growth-stage startups.

Key benefits include:

• Mentorship & Industry GuidanceDirect access to experts from gaming, AI, and digital media sectors

• Knowledge Exchange PlatformsExposure to global best practices, market trends, and cutting-edge technologies

• Proof-of-Concept (PoC) SupportAssistance in developing and validating innovative ideas

• Market Access OpportunitiesIntegration into industry ecosystems and potential pathways to commercialization

• Pilot CollaborationsSelected startups may collaborate with industry players, opening doors to scaling and funding opportunities

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Innovation Challenges and Skill Development Initiatives

A central feature of the collaboration is the integration with the Bharat Startup Grand Challenge, a flagship initiative under Startup India.

Planned activities include:

• Targeted Hackathons

• Innovation Challenges

• Workshops and Masterclasses

These will focus on cutting-edge domains such as:

• Game design and development

• Animation and interactive storytelling

• Immersive technologies (AR/VR)

• Esports management

• Artificial intelligence applications

This hands-on approach is expected to bridge the gap between academic innovation and industry requirements, ensuring startups build solutions that are both scalable and market-ready.

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Driving Ecosystem-Level Impact

Beyond individual startup support, the initiative aims to strengthen the broader startup ecosystem through:

• Outreach programmes under Startup India

• Increased collaboration between startups, corporates, and policymakers

• Enhanced visibility for Indian startups in global markets

The partnership will also enable continuous industry interaction, helping entrepreneurs stay aligned with evolving market demands and technological advancements.

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Public-Private Collaboration as a Growth Catalyst

The MoU reflects a growing trend of public-private partnerships driving innovation, where government facilitation meets industry expertise.

KRAFTON India, known globally for its leadership in gaming and digital entertainment, brings:

• Deep industry experience

• Global market access

• Technological expertise

Combined with DPIIT’s policy support and ecosystem reach, the collaboration is expected to unlock new opportunities for Indian startups on both domestic and international fronts.

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Formal Signing and Stakeholder Participation

The agreement was formally signed by:

• Shri T. L. K. Singh, Deputy Secretary, DPIIT

• Shri Vibhor Kukreti, Head of Government Relations, KRAFTON India Pvt. Ltd.

The signing ceremony was attended by senior officials from both organisations, underscoring the importance of the initiative.

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The Bigger Picture: Positioning India as a Global Innovation Hub

As India continues its journey toward becoming a global technology and startup powerhouse, initiatives like this play a crucial role in:

• Promoting deep-tech and creative industries

• Encouraging startup-industry collaboration

• Building globally competitive digital products

With gaming, AI, and immersive technologies set to dominate the next wave of digital transformation, the DPIIT–KRAFTON partnership could serve as a model for future collaborations, driving innovation, job creation, and economic growth.