In a landmark move to catalyze India’s innovation landscape, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the Research Development and Innovation (RDI) Scheme, with a monumental outlay of ₹1 lakh crore.
The initiative aims to unlock private sector potential in strategic and emerging technologies, laying the foundation for India’s journey towards Viksit Bharat by 2047.
Driving Innovation Through Private Sector Partnership
Recognizing the private sector’s pivotal role in research commercialization and deep-tech advancements, the RDI Scheme introduces a long-term financing mechanism offering low or zero interest rates. This approach addresses long-standing constraints in accessing growth and risk capital, particularly in high-risk, high-impact domains.
The scheme’s key objectives include:
- Scaling up R&D and innovation in sunrise sectors and areas crucial for economic and strategic security.
- Financing transformative projects with high Technology Readiness Levels (TRL).
- Supporting the acquisition of critical and strategic technologies.
- Facilitating the creation of a Deep-Tech Fund of Funds to support deep-tech ventures and startups.
Institutional Structure & Governance
The implementation of the RDI Scheme will be overseen by a multi-tiered governance structure:
- Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overall strategic direction.
- The Executive Council (EC) of ANRF will finalize guidelines, sectors, and project types.
- An Empowered Group of Secretaries (EGoS), led by the Cabinet Secretary, will monitor scheme progress, approve key decisions, and evaluate fund managers.
- The Department of Science and Technology (DST) will serve as the nodal implementation agency.
Funding Framework: Two-Tiered Mechanism
At the heart of the RDI Scheme is an innovative two-tiered funding model:
- Special Purpose Fund (SPF) within ANRF will act as the central custodian of the ₹1 lakh crore corpus.
- Second-level fund managers will deploy funds in the form of:
- Concessional long-term loans to R&D-intensive enterprises.
- Equity investments, especially for high-potential startups.
- Contributions to Deep-Tech Fund of Funds and other RDI-centric financial instruments.
Building a Future-Ready Innovation Ecosystem
The RDI Scheme is not just a funding instrument-it is a bold vision to position India as a global hub of innovation. By enabling access to affordable capital, incentivizing high-impact R&D, and nurturing sunrise industries such as AI, quantum computing, space tech, clean energy, and biotechnology, the scheme aspires to:
- Propel India towards technological self-reliance.
- Strengthen the country’s strategic capabilities.
- Enhance global competitiveness in emerging markets.
Towards Viksit Bharat 2047
With this historic investment in research and innovation, the Government of India is signaling a decisive shift from policy intent to implementation. The RDI Scheme promises to bridge the gap between scientific potential and market-ready solutions, making innovation a cornerstone of India’s development agenda.
As the country looks ahead to its centenary of independence, the RDI Scheme could well be the launchpad that accelerates India’s transition into a knowledge-driven economy.