In a transformative step to bolster India’s research and innovation ecosystem, the Union Cabinet, chaired by Prime Minister Narendra Modi, on July 1, 2025 approved the Research Development and Innovation (RDI) Scheme with a corpus of Rs. One lakh Crore.
Recognising the critical role that the private sector plays in driving innovation and commercialising research, the RDI Scheme aims to provide long-term financing or refinancing with long tenures at low or nil interest rates to spur private sector investment in RDI. The scheme has been designed to overcome the constraints and challenges in funding of private sector and seeks to provide growth and risk capital to sunrise and strategic sectors to facilitate innovation, promote adoption of technology and enhance competitiveness. Key objectives of the Scheme are to, a) Finance transformative projects at higher levels of Technology Readiness Levels (TRL); b) Support acquisition of technologies which are critical or of high strategic importance; and c) Facilitate setting up of a Deep-Tech Fund of Funds.
The Governing Board of Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide overarching strategic direction to the RDI Scheme. The Executive Council (EC) of ANRF will approve the Scheme’s guidelines, and recommend 2nd level fund managers and scope and type of projects in sunrise sectors. An Empowered Group of Secretaries (EGoS) led by the Cabinet Secretary, will be responsible for approving scheme changes, sectors, and types of projects as well as second-level fund managers besides reviewing the performance of the Scheme. The Department of Science and Technology (DST) will serve as the nodal department for implementation of RDI Scheme.
The RDI Scheme will have a two-tiered funding mechanism. At the first level, there will be a Special Purpose Fund (SPF) established within the ANRF, which will act as the custodian of funds. From the SPF, funds shall be allocated to a variety of 2nd level fund managers. This will be mainly in the form of long-term concessional loans. The funding to R&D projects by the 2nd level fund managers would normally be in the form of long-term loan at low or nil interest rates. Financing in the form of equity may also be done, especially in case of startups. Contribution to Deep-Tech Fund of Funds (FoF) or any other FoF meant for RDI may also be considered.
By addressing the critical need of private sector for long-term, affordable financing, the RDI Scheme fosters self-reliance and global competitiveness, thereby facilitating a conducive innovation ecosystem for the country as it marches towards Viksit Bharat at 2047.
Baba Kalyani, Chairman & MD, Bharat Forge Ltd., sees this as a watershed moment that aligns with India’s vision of becoming a global innovation powerhouse. Welcoming the scheme, Baba Kalyani said, “The ₹1 Lakh Crore RDI scheme marks a defining moment as India accelerates its transformation towards a technology-led Innovation Driven economy and a Products Nation. On behalf of the Indian Industry, I thank the Hon’ble Prime Minister, the office of PSA and DST for this bold initiative that will go a long way in catalysing the research & innovation ecosystem of the country.”
Raksha Anirveda's editorial desk team brings in the collective experience of creative professionals - a fine mix of senior copy editors, writers, proofreaders and designers. Working as a team, they continuously create, manage, and curate content to sustain the magazine's profile and reputation in line with market trends and achieve magazine's goal.
