Thursday, March 26, 2026

KRAFTON, Govt of India Sign Memorandum to Power AI, Gaming and Esports Growth

KRAFTON India has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), marking a significant step towards strengthening India’s digital entertainment, gaming, and artificial intelligence ecosystem.

The agreement, signed on March 26 in New Delhi, brings together one of the world’s leading gaming companies and a key policy arm of the Indian government at a time when the country is actively shaping the regulatory and structural future of the sector.

The partnership comes at a pivotal moment for India’s gaming ecosystem. With regulatory frameworks nearing finalisation and increased scrutiny on digital platforms, the collaboration signals a more coordinated approach between industry stakeholders and the government.

Under the MoU, KRAFTON India will work closely with DPIIT across multiple domains, including online social gaming, esports, interactive media, and artificial intelligence. The focus is not limited to market expansion, but extends to capability building and long-term ecosystem development.

Focus on Innovation, Startups and Skill Development

A key pillar of the collaboration is the integration of gaming and interactive media into India’s broader startup and innovation ecosystem.

The two entities will explore initiatives such as innovation challenges under the Bharat Startup Grand Challenge, along with targeted hackathons aimed at solving industry-specific problems. In parallel, structured engagements including workshops, roundtables, and masterclasses are expected to be conducted to build expertise in areas such as game design, animation, esports management, and AI-driven technologies.

This approach places gaming alongside other emerging sectors that are being actively nurtured under India’s innovation policy framework.

The MoU also emphasises deeper engagement with startups operating across gaming, esports, AI, and digital media. Through curated industry interactions and exposure to global practices, the collaboration aims to create pathways for Indian startups to scale and compete internationally.

Officials have indicated that the partnership will also contribute to awareness around responsible innovation, digital safety standards, and evolving global benchmarks in interactive media and AI.

Industry and Government Signal Long-Term Commitment

Speaking on the development, DPIIT Joint Secretary Sanjiv noted that the collaboration reflects a broader push to strengthen India’s digital and creative economy, particularly by enabling startups to build globally competitive solutions.

KRAFTON India CEO Sean Hyunil Sohn described the moment as a turning point for the country’s digital entertainment landscape, highlighting India’s potential to emerge as a global hub for content creation and innovation.

The company has increasingly positioned itself as a long-term stakeholder in India, expanding its role beyond publishing and investment into ecosystem development and institutional collaboration.

The KRAFTON–DPIIT agreement reflects a larger shift in how gaming and esports are being viewed within India’s policy ecosystem. What was once seen primarily as a consumer-driven market is now being integrated into discussions around innovation, technology, and economic growth.

As regulatory clarity improves and global players deepen their engagement, such partnerships are likely to play a defining role in shaping the next phase of India’s gaming and interactive media industry.

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