Bali, a young Indian American works at his uncle's newsstand deep in the bowels of Fulton Street subway station in New York City. Bored by his routine life, Bali sees signs of change in a chance toss of a coin.

Charlie, a lowlife hood being chased by other hoods, gives Bali a bag to hold for safekeeping. Soon the latter is caught up in the gangsters world where he discovers the New York underworld and the mystery of karma. Filmed on location in New York City, Karma Local is a mythic journey from innocence to experience as it follows the multi-cultural visions of the American Dream.