In a major push to elevate India’s innovation and self-reliance agenda, the Union Cabinet has approved the Research Development and Innovation (RDI) Scheme with a financial corpus of Rs1 lakh crore. The initiative is aimed at significantly boosting private sector investment in research, development, and innovation across strategic and emerging sectors.
The scheme, approved during a Cabinet meeting chaired by Prime Minister Narendra Modi, seeks to provide long-term financing or refinancing at low or zero interest rates. It will primarily target sunrise sectors and areas critical to economic security and national strategic interests.
Information and Broadcasting Minister Ashwini Vaishnaw, announcing the scheme, stated that it was designed to address key funding challenges faced by the private sector. “It aims to provide both growth and risk capital, enabling innovation, technological adoption, and enhanced competitiveness,” he said.
Strategic support for transformative research
The RDI Scheme will also support high-technology readiness level projects, facilitate acquisition of strategically important technologies, and enable the formation of a deep-tech fund of funds. Financing may include long-term loans and equity, especially to support startups working on advanced research and development.
The program features a two-tiered funding structure. At its core lies a Special Purpose Fund (SPF) within the Anusandhan National Research Foundation (ANRF), which will manage and disburse the corpus to second-level fund managers. These managers will then extend concessional loans and equity to eligible R&D projects.
Ashwini Vaishnaw emphasized that the scheme aims to empower India’s innovation ecosystem, particularly as the country moves towards its goal of becoming Viksit Bharat (developed India) by 2047.
Governance and implementation
The ANRF’s governing board, chaired by the Prime Minister, will guide the strategic direction of the RDI scheme. Its Executive Council will oversee the formulation of guidelines and selection of fund managers and projects. An Empowered Group of Secretaries, headed by the Cabinet Secretary, will be responsible for key decisions including amendments to the scheme and periodic performance reviews.
The Department of Science and Technology will act as the nodal agency for implementation.
By addressing the critical financing gap in private R&D, the scheme positions India to enhance global competitiveness and establish a robust innovation-led economy in the coming decades.