₹1 Lakh Crore Push for Research and Innovation Under RDI Scheme

Published on: 4th July 2025

In a landmark move to strengthen India’s innovation ecosystem, the Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has approved the Research, Development and Innovation (RDI) Scheme with a total outlay of ₹1 lakh crore. Of this, ₹20,000 crore has already been earmarked in the current year’s Union Budget. The scheme is a strategic initiative to accelerate research and private-sector innovation in key technology areas, aligned with India’s long-term development vision-Viksit Bharat 2047.

The RDI Scheme will be implemented by the Department of Science and Technology (DST) through a Special Purpose Fund housed within the Anusandhan National Research Foundation (ANRF). It aims to catalyse private investment and R&D in critical and emerging technologies such as artificial intelligence, semiconductors, quantum computing, clean energy, biotechnology, and space tech. By creating an enabling environment for deep-tech ventures, the scheme is expected to address long-standing funding gaps and make Indian enterprises more globally competitive.

Innovative Funding Model

One of the scheme’s key features is its flexible and forward-looking financing model. It introduces concessional long-term loans alongside blended financial instruments such as equity, debt, and hybrid tools. These will be routed through a tiered fund-of-funds structure involving second-level fund managers who will assess and support eligible projects. This design gives companies the much-needed financial headroom to take risks and pursue breakthrough innovations without immediate commercial pressure.

The scheme’s governance framework ensures strong institutional support and strategic oversight. The Prime Minister will chair the Governing Board of the ANRF, which will be responsible for the overall direction of the initiative. An Executive Council under the ANRF will identify focus areas and approve project portfolios, while an Empowered Group of Secretaries led by the Cabinet Secretary will oversee performance and alignment with national priorities.

By unlocking new pathways for collaboration between government, industry, and academia, the RDI Scheme is set to drive India’s next phase of technology-led growth. It signals a clear commitment to positioning India as a global hub for high-impact research, indigenous innovation, and deep-tech entrepreneurship.