Prime Minister Narendra Modi inaugurated the ₹1 lakh crore (₹1 trillion) Research, Development and Innovation (RDI) Scheme Fund during the Emerging Science & Technology Innovation Conclave (ESTIC) 2025 in New Delhi. The initiative aims to significantly increase private sector investment in R&D by providing patient capital to projects that carry higher risks but have the potential for large-scale impact. This move marks the first time the government is directly facilitating capital availability targeted at private-sector led innovation to catalyze India’s vision of a Viksit Bharat 2047.
Structured Funding Model for Maximum Impact:
The Department of Science and Technology (DST) will administer the fund using a two-tier funding mechanism. First, the corpus will be maintained by a Special Purpose Fund (SPF) under the Anusandhan National Research Foundation (ANRF). The SPF will use second-level fund managers, such as alternative investment funds (AIFs), development finance institutions (DFIs), non-banking financial companies (NBFCs), and specialized research organizations like the Indian Institute of Technology (IIT) research parks and the Biotechnology Industry Research Assistance Council (BIRAC), to channel funds rather than making direct investments. Grants and short-term loans are not included in the financing options, which include long-term low-interest loans, equity injection, particularly for startups, and contributions to the Deep-Tech Fund of Funds.
Targeted Sectors and No Investment Caps:
The RDI Fund focuses on cutting-edge sectors such as energy, biotechnology, medical devices, deep tech, artificial intelligence, quantum computing, and space technology. Importantly, there is no upper cap on the investment amount, allowing large companies as well as startups to apply, provided they commit at least 50% of the project cost themselves. This provision encourages robust private participation while shared risk ensures that innovative but high-risk ideas get the necessary funding support. Various industry veterans have welcomed the scheme as a transformative catalyst to bridge the gap between early-stage research and market-ready innovations, supporting long-term scientific inquiry and commercialisation.
Focus on Timely Implementation and Collaboration:
The government has laid out an ambitious timeline for the implementation of the ₹1 trillion RDI Fund, aiming to mobilize resources and deploy capital efficiently across priority sectors within the next few years. To ensure strong oversight and streamlined disbursement, the Anusandhan National Research Foundation (ANRF) will play a pivotal role in coordinating among the Special Purpose Fund (SPF), second-level fund managers, and project beneficiaries. To make sure the fund meets its strategic goals on time, the Empowered Group of Secretaries (EGoS) will keep a close eye on the scheme’s development and suggest any required policy changes. In order to stimulate high-impact research initiatives, the transformative roadmap will include thematic conclaves and innovation challenges that will actively encourage collaboration between academics, industry, and startups. The government’s dedication to converting this historic capital flow into real technological advancements and economic expansion can be seen by this concerted effort.
Aimed at Making India a Global Innovation Hub:
The ₹1 trillion RDI Fund not only seeks to enhance the country’s research capabilities but also aims to create a holistic innovation ecosystem that fosters collaboration between academia, industry, and entrepreneurs. This initiative aligns with Prime Minister Modi’s vision of ‘Jai Vigyan’ and ‘Jai Anusandhan’ supplementing the mantra of ‘Jai Jawan, Jai Kisan.’ By providing patient capital and reducing risk, the fund is positioned to accelerate India’s journey towards emerging as a global innovation hub, placing emphasis on developing sovereign technologies in critical fields such as space, defense, semiconductors, and biotechnology.
