In a significant step to enhance India’s research and innovation capabilities, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme, allocating ₹1 lakh crore to support private sector R&D efforts. This initiative focuses on encouraging investment in critical and emerging sectors that are vital for the country’s economic and technological progress.
The RDI Scheme aims to address funding challenges faced by private enterprises in research and development by providing long-term loans at low or zero interest. The program is designed to fuel high-impact innovation, encourage technology adoption, and improve competitiveness across strategically important industries.
The RDI Scheme is designed to promote private-sector-led research and development in sectors essential for India’s self-reliance and long-term growth. It aims to finance high-technology projects with advanced technology readiness levels, support the acquisition of strategically important technologies, and establish a Deep-Tech Fund of Funds to strengthen innovation-focused financing and accelerate breakthroughs in critical areas. The Department of Science and Technology (DST) will serve as the primary agency for executing the scheme. Oversight and strategic direction will be managed by the Governing Board of the Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister.
An Executive Council within ANRF will define operational guidelines and choose fund managers, while an Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will oversee implementation and make policy adjustments when needed. The scheme introduces a two-tier funding model. First, a Special Purpose Fund (SPF) will be established under ANRF to manage the corpus. These funds will then be allocated to second-tier fund managers who will disburse them as concessional loans or equity investments, especially to startups working on innovative technologies. The framework also allows for contributions to deep-tech and other specialized funds.
By closing the gap in financing for private R&D, the RDI Scheme is expected to accelerate India’s journey towards technological leadership and self-sufficiency. It aims to create a robust innovation ecosystem that supports the country’s broader vision of becoming a developed nation by 2047.
