The Department for Promotion of Industry and Internal Trade ( DPIIT ) has entered into a MoU with KRAFTON India . The agreement aims to nurture startups in the digital entertainment space, covering online gaming, esports , animation, and AI -driven technologies. Key Developments Startups will receive mentorship, industry insights and access to knowledge‑exchange platforms. Support for Proof‑of‑Concept ( PoC ) development, market entry and integration into industry ecosystems. Joint organisation of innovation challenges under the Bharat Startup Grand Challenge , along with hackathons, workshops and masterclasses on game design, immersive tech and AI applications. Potential pilot collaborations for selected startups, with further engagement based on outcomes. Enhanced outreach through Startup India programmes to broaden ecosystem participation. Important Facts The MoU was signed on 26 March 2026 by Deputy Secretary, DPIIT Shri T. L. K. Singh and Head of Government Relations, KRAFTON India Shri Vibhor Kukreti . The collaboration emphasises structured industry engagement to help startups achieve scalable, industry‑relevant solutions. UPSC Relevance Understanding this partnership is vital for GS‑3 (Economy) and GS‑4 (Ethics) papers. It illustrates how the Government leverages public‑private partnerships to: Strengthen the digital and creative economy, a priority in India’s Digital India vision. Promote innovation in emerging sectors such as gaming and AI, aligning with the Make in India and Startup India missions. Address challenges of market access and technology transfer for nascent firms, a recurring theme in policy‑making questions. Way Forward For aspirants, monitor the outcomes of the innovation challenges and the scale‑up of participating startups. Evaluate how such collaborations can be replicated across other sectors (e.g., health‑tech, clean‑energy) and assess their impact on employment generation, export potential and India’s positioning in the global digital entertainment market.