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

 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.

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.”

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

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.

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.

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.

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.

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.