₹1 Lakh Crore RDI Scheme – to Boost R&D & Innovation in India
In a landmark decision to fuel India’s innovation ecosystem and boost private sector participation in Research, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Research, Development and Innovation (RDI) Scheme with a total outlay of ₹1 lakh crore.
The RDI Scheme aims to scale up investment in Research, Development, and Innovation across strategic and emerging sectors, including areas critical for economic security, national interest, and technological leadership. This scheme will provide long-term, low or zero-interest financing to the private sector, thereby removing key barriers to investment in high-risk, high-reward research and development ventures.
Vision for a Self-Reliant, Future-Ready India
The RDI (Research, Development & Innovation) Scheme is designed to support India’s transition toward a robust innovation-led economy by empowering private industry to take bold steps in technology development and adoption. The RDI scheme will play major role in India’s journey towards achieving Atma Nirbhar Bharat (Self-Reliant India) as well as realizing the nation’s long-term vision of a Viksit Bharat by 2047
Key Objectives of the Researcher, Development & Innovation Scheme
The newly approved scheme targets multiple strategic goals:
- Encouraging private sector RDI (Research, Development & Innovation) in critical and sunrise domains, including defense technologies, Artificial Intelligence, Quantum Computing, Space Technology, Biotechnology, and other frontier areas.
- Supporting projects with high Technology Readiness Levels (TRLs) that are near commercialization or require scale-up financing.
- Enabling the acquisition and development of critical, strategic technologies to enhance national capacity.
- Facilitating the establishment of a Deep-Tech Fund of Funds, encouraging venture capital and risk funding in advanced technologies.
Governance and Implementation
The scheme will be implemented through a two-tiered funding mechanism:
- Special Purpose Fund (SPF): A Special Purpose Fund will be established within the Anusandhan National Research Foundation (ANRF) to serve as the primary custodian of the ₹1 lakh crore corpus. The SPF will manage the allocation of funds and ensure financial discipline. It will function as the apex funding body, maintaining accountability while enabling flexibility in investment across priority sectors.
- Second-Level Fund Managers: Funds from the SPF (Special Purpose Fund) will be allocated to selected second-level fund managers. These entities will be responsible for disbursing funds to research, development, and innovation projects across strategic and sunrise sectors.
The support will be extended in various forms, such as:
- Long-term concessional loans can reduce the financial burden on R&D-intensive firms.
- Equity investments are specifically designed to support high-potential startups and deep-tech ventures.
- Contributions to Deep-Tech Funds of Funds, which will further invest in cutting-edge innovation initiatives.
This two-tiered model ensures that financial assistance reaches both the established companies and emerging innovators, fostering a balanced research, development, and innovation ecosystem. The Department of Science and Technology (DST) will serve as the primary regulatory body for implementing the Scheme.
The Governing Board of ANRF (Anusandhan National Research Foundation), chaired by the Prime Minister, will provide overarching strategic guidance. An Executive Council under ANRF will approve guidelines, identify sectoral focus areas, and recommend fund managers. An Empowered Group of Secretaries (EGoS), headed by the Cabinet Secretary, will periodically review performance and authorize modifications in project scope or management.
Expected Outcomes
The RDI (Research, Development & Innovation) Scheme is expected to deliver far-reaching benefits
- Strengthen Private Sector R&D Capabilities: The scheme will provide companies, especially startups and MSMEs, with access to long-term and low-cost financing to undertake high-impact research and development.
- Foster an Innovation Ecosystem: By mentioning funding gaps, the scheme will encourage and promote collaboration among Industry, Academia, and Government, leading to a more robust and inclusive innovation environment.
- Enhance Global Competitiveness: Indian enterprises will be better equipped to develop advanced technologies and compete in international markets, particularly in areas such as Artificial Intelligence, Biotechnology, Semiconductors, and clean energy.
- Promote Technology Self-Reliance: The scheme will reduce dependence on imported technologies by supporting the development and acquisition of critical and strategic innovations within India.
- Advance the Vision of Viksit Bharat @2047: By strengthening the research and innovation foundation, the scheme supports India’s long-term goal of becoming a developed nation by 2047.
A Transformative Step for India’s Innovation Future
With the approval of this landmark RDI (Research, Development & Innovation) fund, the government has taken a decisive step to empower India’s private sector, attract global technology collaborations, and scale up scientific innovation. This initiative not only marks a significant milestone in India’s innovation policy but also lays the foundation for a more self-reliant, resilient, and globally competitive economy in the years to come.
