In a major push to make India a global hub for innovation, Union Cabinet led by Prime Minister Narendra Modi has approved the Research Development and Innovation (RDI) Scheme, with a massive outlay of Rs 1 lakh crore. The scheme is aimed at accelerating private sector investment in research and development, especially in high-tech, strategic, and emerging areas crucial to India’s economic and strategic interests.
RDI Scheme is designed to break financial barriers that often prevent private companies from entering deep-tech and high-risk research domains. It offers long-term loans with low or even zero interest rates and the possibility of equity funding, especially for startups. The idea is to provide not just funds, but confidence to the private sector to invest in India’s future technologies and become globally competitive.
The scheme’s key goals include scaling up private sector R&D efforts in sunrise sectors, supporting high-technology projects that are closer to commercialisation, and helping Indian companies acquire or build critical technologies. A Deep-Tech Fund of Funds will also be set up to support startups and ventures working on advanced technologies.
At the core of the RDI Scheme is a strong governance and implementation structure. The Anusandhan National Research Foundation (ANRF), chaired by the Prime Minister, will provide the strategic vision, while its Executive Council will fine-tune the execution.
An Empowered Group of Secretaries led by the Cabinet Secretary will handle operational decisions, including approvals of new sectors and second-level fund managers. The Department of Science and Technology (DST) will be the nodal department overseeing implementation on the ground.
The funding model has two tiers. A Special Purpose Fund will be created under ANRF, which will then route funds to selected second-level fund managers. These managers will disburse money as long-term concessional loans or equity investments, ensuring financial flexibility for R&D-heavy projects. Contributions to Deep-Tech Funds or other similar platforms will also be allowed under the scheme.
RDI Scheme is seen as a strategic move to boost innovation, reduce technological dependence, and prepare India for the goals of ‘Viksit Bharat’ by 2047 by directly addressing the private sector’s need for affordable and long-term financing.
